The Bitcoin price experienced a downturn on Tuesday, November 14, erasing some of its recent gains ahead of the crucial inflation data that is scheduled to be released later today. According to experts, the release of the U.S. Consumer Price Index (CPI) data for October is crucial and can impact the momentum of the broader market, let alone Bitcoin’s performance.

In addition, the Securities and Exchange Commission’s (SEC) decision on a dozen spot Bitcoin Exchange-Traded Fund (ETF) applications, expected between November 9 and November 17, is also one of the crucial factors. The decision might work as a positive catalyst for Bitcoin in the coming days, as it could inject billions of dollars into the BTC market.

Bitcoin Loses Momentum Ahead Of CPI Data

Tuesday witnessed Bitcoin’s price sliding below $36,500, indicating investor caution ahead of crucial economic data releases. The U.S. Federal Reserve’s scheduled release of Consumer Price Index (CPI) data and Producer Price Index (PPI) data this week is a focal point. Notably, the market anticipates insights into the nation’s economic health, with particular concern about inflation’s impact on recent market momentum.

Analysts emphasize Bitcoin’s sensitivity to economic indicators, notably the CPI. Past reports have shown Bitcoin’s reaction to economic fluctuations when a 3.7% annual increase in September caused a slight drop, highlighting the cryptocurrency’s volatility.

Meanwhile, the upcoming CPI report, a crucial factor for Bitcoin’s price, is expected to show a slowdown in October’s headline CPI, dropping to 3.3% year-over-year. In addition, economists anticipate the core CPI to remain stable, reflecting a 0.3% monthly and a 4.1% year-over-year increase. Meanwhile, the current CPI, according to the estimates, still surpasses the US Federal Reserve’s 2% target, indicating a complex economic landscape that may have a substantial impact on Bitcoin.

Meanwhile, if the October inflation comes hotter than anticipated, it would give more space to the central bank to continue with its rate hike plans. Notably, higher interest rates tend to negatively impact the broader financial market along with risk-bet assets like cryptocurrencies.

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Recent Price & Performance

The Bitcoin price declined 1.47% over the past 24 hours and traded at $36,454.47 during writing, with its trading volume soaring 40.57% to $18.92 billion. However, the crypto has added nearly 6% over the past seven days and around 36% over the last 30 days.

Meanwhile, the decline in the largest crypto by market cap reflects the gloomy sentiment in the broader market as well. The global crypto market cap fell 1.47% to $1.4 trillion during writing, and its trading volume soared 26.21% to $61.37 billion.

Notably, higher interest rates resulting from CPI data impact investor sentiment towards riskier assets, including cryptocurrencies. The impending CPI report, coupled with the potential approval of a Spot Bitcoin ETF, adds layers of complexity to Bitcoin’s trajectory. Investors keenly observe these developments, recognizing the dynamic and speculative nature of cryptocurrency markets.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.