With U.S. economic statistics anticipated next week, China presents a possible leading signal for the strength of the Bitcoin price (1). In front of a crucial week for macro data, I.T. continued to provide $17,000 of assistance until December 10.
CPI data will cause the Fed to "slow down."
BTC/USD (2) was tracked by as it moved sideways following the end of Wall Street trading. All eyes were on the United States inflation data and policy updates starting on December 13 as the couple appeared to be in for a quiet weekend.
The Consumer Price Index (CPI) data for the month began with the Producer Price Index (PPI) November print in the rearview mirror. There are still hopes that CPI may demonstrate that U.S. inflation is still declining, giving risk assets, like cryptocurrency, new support. Michal van de Poppe, founder and CEO of trading company Eight, stated in a Twitter thread on the subject that he anticipates the CPI to come in at 7.0–7.2% and Core CPI at 5.9–6.1%, as well as that we'll have a significant influence on the markets once more.
Yesterday, PPI came in higher than anticipated.
— Michaël van de Poppe (@CryptoMichNL) December 10, 2022
However, expectations were relatively on the low side.
Core PPI October Forecast 7.2%, actual 6.7% | Drop of 0.5% in one month.
Core PPI November Forecast 5.9% (?), actual 6.2% | Drop of 0.5% in one month.
How experts saw this data
Van de Poppe said that should that scenario occur, the Federal Reserve's Federal Open Market Committee (FOMC) meeting on December 15 should react in kind. After this occurrence, the FOMC would "stop and slow down," he said. As the week concluded, macroeconomist and stock analyst James Choi compiled a list of stock market triggers, including developing markets and the "never-ending repression" of the volatility index, or VIX.
"Great investment possibilities are created by the USA's peak inflation, a weaker USD, and China's openings. Since November, the Chinese Real Estate ETF $CHIR has increased by an astounding 80%. Unreal," he continued.
Why bulls are enthusiastic about China
Regarding China further, cryptocurrency analyst and trader TechDev identified the Chinese ten-year bond yield of the U.S. Dollar Index as a potential leading signal for Bitcoin strength (DXY). In one of numerous Twitter messages this week, he stated that with the market moving higher, if history repeats itself, BTC/USD might gain in kind.
USA Peak inflation, Weaker $USD, China reopening are making some great investing opportunities. Chinese Real estate ETF $CHIR up staggering 80% since November. Unbelievable.
— James Choi (@JC_Investment) December 9, 2022
According to further comments, few signals have been as closely connected with Bitcoin's macro inflections as China's 10-year yield. Local peaks at significant $BTC impulse peaks. Breaking the local downtrend with a 3W RSI above 50 in each of Bitcoin's transactions
