Printing CPI Will Make The Fed “Slow Down”
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it traded sideways after the Wall Street close.
The pair seemed set for a quiet weekend, with all eyes focused on US inflation readings and policy updates from December 13th onwards.
With November’s Producer Price Index (PPI) trailing behind, the Consumer Price Index (CPI) results for the month took center stage.
As Cointelegraph reported, expectations remain that the CPI will show continued subdued inflation in the United States, sparking renewed strength in risk assets, including cryptocurrencies.
“My personal expectation is that we will see the CPI come in at 7.0-7.2%, the core CPI at 5.9-6.1% and that we will have a huge impact on the markets again,” Michael van de Poppe, founder and CEO of trading firm Eight, wrote. in a Twitter thread about it.
Van de Poppe added that the Federal Reserve’s Federal Open Market Committee (FOMC) meeting on December 15 should respond in kind should that outcome result.
He predicted that “the FOMC stalls and slows down after this event.”
Meanwhile, macroeconomist and equity analyst James Choi produced a list of stock market catalysts as he closed out the week, including emerging markets and a “never-ending crackdown” in the VIX volatility index.
“Peak inflation in the USA, a weaker US dollar, and the reopening of China offer some great investment opportunities. The Chinese real estate ETF $CHIR is up an astonishing 80% since November. Incredible.”
US Dollar Index (DXY) chart in the form of a one-day candle. Source: TradingView
China is making bitcoin bulls excited
Continuing in China, crypto analyst and trader TechDev has identified a potential leading indicator of Bitcoin’s strength in the form of the Chinese Ten-Year Bond Yield against the US Dollar Index (DXY).
Related: 9/12 Price Analysis: BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, DOT, LTC, UNI
If history repeats itself, he said in one of several Twitter posts this week, BTC/USD could benefit in kind.
“Few signals have correlated with Bitcoin macro reversals as tightly as the China 10-year yield,” another commented.
“Local peaks in major $BTC$ motive tops. Local downtrend of CN10Y breaches with 3W RSI surpassing 50…Both of Bitcoin’s 3 biggest moves started.”
