This week, Bitcoin and the rest of the crypto market anticipate a slew of macroeconomic data from the United States. The market awaits the release of January CPI data on Tuesday, Feb. 13, 2023, which could have a significant impact on the price and volatility of Bitcoin.
Bitcoin is frequently sensitive to macroeconomic events and indicators, such as Consumer Price Index (CPI) data, which tracks changes in the cost of goods and services. The CPI data indicate the degree of inflation in the economy, which influences the value of the U.S. dollar and interest rates set by the Federal Reserve.
As markets cement expectations of interest rate cuts, the Federal Reserve will most likely closely monitor the Consumer Price Index (CPI) and Producer Price Index (PPI) prints for January for its next move.
According to insights shared by the Walter Bloomberg X account, the U.S. dollar may strengthen if the U.S. consumer price report on Tuesday shows higher-than-expected inflation, reinforcing the Federal Reserve's lack of eagerness to cut rates, citing Abdelhadi Laabi, chief marketing officer at KAMA Capital.
Conversely, weaker-than-expected inflation could weaken the currency.
The headline U.S. inflation is predicted to fall to 2.9% in January, down from 3.4% in December, while core inflation is expected to fall to 3.7% from 3.9%, according to The Wall Street Journal's poll of analysts.
Bitcoin, the largest cryptocurrency by market capitalization, is hovering below $48,000 after its longest winning streak since January 2023, propelled by a rise in ETF inflows. Bitcoin gained for seven consecutive days before falling to $47,946 at press time.
As for what's next for BTC price, according to IntoTheBlock, Bitcoin's next big price target is $50,000. However, to get there, there is one important resistance level left, which is at $48,491.
This is as over 800,000 addresses acquired nearly 270,000 BTC at an average price of $48,491. These addresses being in the red presently might provide sell pressure for the BTC price as they break even on their position.