The Bitcoin may temporarily hold above the $84,000 mark on Tuesday. The recent fluctuations are likely to be understood, not least, as a classic fact-check and thus as a certain calm before the storm. Perhaps bargain hunters saw the recent price decline as an opportunity to enter the market. A convincing counter-move still looks different. New US price data are now in focus.
Bitcoin chart on monthly basis
Economists expect September inflation to be 3.6 percent – interest rate concerns could resume
Therefore, the focus is now on the US inflation data on Wednesday (14:30), which could potentially serve as a highlight of the current trading week. Investors in the cryptocurrency market are also likely to react to these data, especially as the US Federal Reserve (Fed) is closely monitoring the inflation development with an eye on the future design of US monetary policy.
According to the latest estimates, inflation in September could have risen by 3.6 percent compared to the same month last year, which is significantly higher than in August (3.4 percent). Compared to the previous month, an increase of 0.6 percent is expected, after previously 0.4 percent.
US producer prices are expected to provide monetary policy impetus on Thursday
Investors should also keep an eye on the development of US producer prices, which are expected for Thursday (14:30).
Should inflation developments have gained more momentum than expected overall, this could potentially give the US central bank arguments to further raise the key interest rate. The prospect of further rising capital market interest rates, in turn, is likely to increase the opportunity costs of holding interest-free assets, which could be detrimental to Bitcoin.
The so-called „US midterms“ in the USA could also soon cast their shadow. On November 3, parts of the US Congress are set to be re-elected. Investors should continue to hope for the implementation of crypto-friendly measures by US President Donald Trump.
