Bitcoin Moves Volatile Ahead of U.S. Inflation Data; Gold Nears Record High
Bitcoin traded in a wide range between $86,000 and $90,000 over the last 24 hours, with the price around $86,465.40. This volatility in Bitcoin comes as markets await the release of U.S. November Consumer Price Index (CPI) data, expected to show a 3.1% year-over-year increase, with core inflation also forecasted at 3.1%.
The November inflation release is particularly significant as it is the first comprehensive data read since October's was canceled due to a government shutdown. Market participants will analyze this data for signs of disinflation in services and persistent tariff-driven price pass-throughs to better assess inflation trends and monetary policy direction.
Expectations are for at least two Federal Reserve rate cuts of 25 basis points each in the coming year. However, the indication of 3.1% CPI could lead to hawkish commentary from the Fed, potentially delaying those cuts. The 10-year U.S. Treasury yield has remained above 4%, reflecting inflation uncertainty and influencing risk assets such as Bitcoin.
Bitcoin did not sustain a bullish response following recent jobs data, and the forthcoming inflation numbers could shift sentiment and market risk dynamics further.
Additionally, MSCI's ongoing review may result in exclusions for firms with significant digital asset treasury holdings, which could trigger passive outflows of up to $2.8 billion for companies with more than 50% crypto exposure.
