Bitcoin Stabilises at $100k Ahead of Key Inflation Data Release

Since Bitcoin broke through the $100k barrier, the journey hasn’t been the euphoric sprint to $110k or $120k that some optimists envisioned. Instead, the aftermath of this milestone brought a volatile 24 hours, characterized by rapid price swings and a dip in buying volume. Following this turbulence, Bitcoin has stabilized around the $100k mark, consolidating its gains.

This consolidation phase, which follows mass liquidations and the psychological break of $100k, is highly bullish. Key technical indicators that were previously overextended into overbought territory have now reset into neutral zones. This reset provides Bitcoin with more room to rally when the consolidation ends.

CPI Data and FOMC: Market Catalysts to Watch

Thursday morning will bring the final CPI numbers for the year. November’s inflation figures came in as expected, with a 0.2% month-over-month (MoM) increase and a 2.6% year-over-year (YoY) reading. However, December’s inflation is forecasted to rise slightly, with a 0.3% MoM increase bringing the YoY reading to 2.7%.

Why does this matter? In nine days, the final Federal Open Market Committee (FOMC) interest rate decision of the year will take place. The inflation data on Thursday may influence the Fed’s decision. Markets are currently pricing in a 25 basis point rate cut, aligning with Powell's recent statements, but there remains a 15% chance that the Fed opts to hold rates steady. A pause in rate cuts could be interpreted as bearish for risk-on assets in the short term, potentially offering lucrative buying opportunities within the crypto market.

For investors feeling underexposed or concerned about missing out, this period of consolidation offers a compelling opportunity to strengthen your Bitcoin position. The market is still in its early growth phase, making this a golden moment for long-term believers to capitalise. Contact your Stormrake Crypto Broker today to take advantage of this setup.

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