Bitcoin’s Wild Ride: From $37,900 Peaks to CPI‑Driven Give‑Ups
Last week, Bitcoin flirted with a fresh record, soaring to $37,900—the highest it’s seen since May 2022. But the crypto haven’s excitement fizzled out, slipping to $36,664 by the start of Tuesday’s market. It’s a classic case of a wild ride that gets tamed by the inevitable slow‑punch of economic data.
Why the Price is Rolling Back
Crypto’s recent dip mirrors a broader “downward correction” trend that wiped out most of the weekend’s gains. Investors are holding their breath, waiting for the U.S. Consumer Price Index (CPI) to drop into the spotlight later today, followed by next week’s October CPI report.
A key metric: the core CPI—which strips out volatile foods and energy—has analysts predicting a modest 0.1% rise month‑on‑month for October, a dramatic drop from the 0.4% hot‑spot seen the month before.
Fed Chair Jerome Powell recently reminded everyone that the bank won’t shy away from snatching the Fed’s interest‑rate lever, even if that means a standoff over stubborn inflation. His words hint that Bitcoin traders are staying on their toes—the market’s “worry meat” as it were.
Inflation’s Immediate Ripple on Crypto
In my book, if the CPI comes in lighter than feared, the markets should feel a burst of relief. Stocks might get a quick lift and the U.S. dollar could take a temporary dip, even if the core inflation stays stubbornly high. Meanwhile, high‑risk assets like Bitcoin often feel the squeeze when inflation looks fierce.
And that’s the short‑term narrative: Bitcoin’s price is likely to be buffeted by the October CPI release.
What Short‑Term Moves Mean for Bitcoin
- Higher inflation numbers = short‑term pain for crypto.
- Longer horizons are shaped by politics, regulations, and every time we hear “Bitcoin ETF” rumblings. The hopeful approval of the first Bitcoin ETF could revitalize the market—especially if the SEC takes any decisive steps ahead of its mid‑January deadline.
And did you hear the whale news? Recent transactions well over $100,000 are rocking the market, and Bitcoin’s price has leapt roughly 35% since mid‑October’s uptrend kickoff.
All these whales might indicate the SEC is on the verge of green‑lighting some ETF applications. The comment period for many submitted ETFs wrapped up last Wednesday, so we could see decisions from November 14–17. Of course, big transfers often signal profit‑taking, driving price corrections—but the bullish technical signals are still strong.
Stay on Top of the Market Pulse
Get real‑time updates for this category straight to your device. Subscribe now to keep your finger on crypto’s pulse—no more missing the next big move!
