The crypto space, which had geared up to some extent during the past few days, appears to have again re-entered the bear trap. Moreover, the upcoming week is speculated to be more intense as the majority of the cryptos could undergo a gigantic price action regardless of the direction of the trend. Therefore, multiple analysts could impact the Bitcoin (BTC) price rally, which may in turn slash the entire crypto market.
The attention is getting back to Bitcoin as the fresh CPI rates could be released in a short while from now. The token reacted badly to the U.S Producer Price Index(PPI) which has been dropping significantly from the last month, but pretty much less than expected.
Besides, a popular analyst, Nicholas Merten, says in his new video update that the market is waiting for the Consumer Price Index(CPI) report and the last Federal Reserve meeting of the year, which coincidentally fall in the coming week. He says,
“Why are people not buying the dip? The reason, in my opinion, is what’s coming up here next week and it has to do with the upcoming inflation numbers form the CPI report as well as the Fed at FOMC meeting,”
The CPI report is expected to be out by 12 December 2022, while the FOMC meeting is scheduled on December 14. The analyst says that the CPI report usually moves the market up, and is expected to reveal higher-than-expected inflation data soon. However, if the FED opts out of a lower rate hike than expected, the analyst believes that the markets could still remain under pressure.
“Does this mean the market is just immediately saved? Does this mean that we’re kicking off the next bull run?
No. In fact, if we look at previous bear markets, even as the Fed is starting to pivot and starting to drop the federal funds rate by multiple points, you’ll see that equities still went down. It still underperformed because again, to the point that people say that these things have lagging effects, you can’t just come in immediately, cut interest rates and save the day.”