Bitcoin Price Rally Above $18 Ahead of Today’s Crucial CPI Data

Author: Sohrab Khawas

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    Bitcoin price has gained approximately 4.14 percent in the past 24 hours to trade around $18,163 during early Asian trading sessions on Thursday. The global crypto market capitalization pumped approximately 3.32 percent to stand at approximately $885.59 billion today. The stock market led by key indexes like Dow, S & P 500, and Nasdaq also rallied ahead of today’s December Consumer Price Index (CPI) report for investors. 

    The Consumer Price Index (CPI) from the Bureau of Labor Statistics shows how the prices of goods and services changed in a given month. Notably, consumer prices account for a majority of overall economic inflation.

    While the United States controls approximately 25 percent of the global economic activities, market strategists believe today’s CPI data is crucial for the entire world including crypto assets. As such, economists polled by Dow Jones expect the December CPI report to show that prices dipped 0.1 percent from the month before.

    “What makes [today’s] consumer price index number a big deal? Simple: We’re looking to see if we’re nearing the end of the period where companies can raise prices with impunity,” CNBC’s Mad Money host Jim Cramer noted.

    Closer Look at Bitcoin Price and Crypto Market Outlook 

    Bitcoin price is at a crucial crossroads that could either see the end of the year-long bear market or a continuation. From a technical standpoint, Bitcoin price is retesting last December’s high, and a support level that held since mid-2022 until the FTX implosion. A breakout above this level could invalidate the 2022 bear market, with analysts expecting a consolidation before the onset of the next bull market. 

    However, a pullback from the current Bitcoin price level could result in a correction toward $15,500. Consequently, the altcoin market could pull back from the ongoing rally. As such, analysts have cautioned crypto traders to be patient with the market in such times.

    Moreover, the fear of missing out alias FOMO could result in a huge stop hunt as long traders get liquidated before a pullback in the coming days. Some of the best-performing altcoins in the past 24 hours include Avalanche (AVAX) which has gained approximately 22.43 percent to trade around $15.43 on Wednesday. 

    Nonetheless, some altcoins lost significantly in the past day including Solana’s latest meme coin BONK exchanged for $0.00000103, down approximately 34 percent.

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