Bitcoin Price Volatility Expected as US CPI Data Approaches
Bitcoin (BTC) traders are preparing for potential price swings as the release of the United States Consumer Price Index (CPI) data approaches. The anticipation of macroeconomic data and a presidential debate between Donald Trump and Kamala Harris has led to cautious behavior among market participants.
BTC Price Holds Steady Amid Market Uncertainty
As of September 10, Bitcoin’s price remained stable, refusing to dip significantly. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD aiming to retest the $57,000 mark after a slight decline to $56,530 on Bitstamp.
Risk assets, including Bitcoin, are treading carefully ahead of the US August CPI report set for September 11. This report coincides with the first presidential debate between the candidates, adding to the market’s uncertainty.
Anticipation for BTC Price Movement
According to QCP Capital, a trading firm, the crypto market is experiencing increased macro uncertainty. This is reflected in the 30-day correlation between Bitcoin and the MSCI World Equity Index, which has reached a near two-year high of 0.6. QCP Capital’s latest bulletin to its Telegram subscribers highlighted expectations for BTC price volatility in the next 24 hours. The options market suggests a potential movement of more than 3.3% from the current spot price of $56.8k by the time options expire post-debate.
While Trump is generally seen as a pro-crypto candidate, QCP Capital believes Kamala Harris could surprise the market by positively addressing crypto during her campaign.
Recent BTC Price Performance
The previous week saw Bitcoin’s price dip below $53,000, contributing to a massive $4.1 trillion decline in the global stock market’s market cap—the largest drop in two years, according to data from Bloomberg Terminal and The Kobeissi Letter.
Despite BTC/USD being up 3.7% from the weekly open at the time of writing, market sentiment remains cautious. Popular trader Skew pointed out that further confirmations are needed for a bullish divergence to play out, including reclaiming previous lows around the $57.4K area and maintaining a daily Relative Strength Index (RSI) above 50.
Bitcoin ETFs See Positive Inflows
On a positive note, institutional inflows into US spot Bitcoin exchange-traded funds (ETFs) have shown signs of recovery. Data indicates that Bitcoin ETFs recorded net positive flows of $28.6 million on September 9, marking the first day of net positive inflows since August 26. This turnaround follows a combined net outflow of over $700 million in the previous week.
QCP Capital remains structurally bullish on Bitcoin for the fourth quarter, buoyed by the positive ETF flows.
Conclusion
As the market awaits the US CPI data and the upcoming presidential debate, Bitcoin traders are bracing for potential price volatility. The cautious sentiment is reflected in the options market, which anticipates significant price movements. While recent performance has been mixed, institutional interest in Bitcoin ETFs provides a silver lining for long-term bullish prospects.
This article does not contain investment advice or recommendations. All trading and investment decisions involve risk, and readers should conduct their own research.
