Inflation only marks the beginning of a series of key macro decisions that could send Bitcoin down for months, the warnings read.

Bitcoin (BTC) rebounded over $ 48,000 on December 10 after another drop pushed BTC / USD as high as $ 47,350 overnight.

Tantrums

Data from Cointelegraph Marketplaces Pro and TradingView show the pair is around $ 48,300 at press time as markets adjust for a consumer price index (CPI) in November.

As Cointelegraph reported, economists expect full-year inflation data this month to be 6.7% higher than October.

While last month’s shocking CPI news fueled a spike in Bitcoin and cryptocurrencies, analysts were cautious about Friday’s numbers.

“At this point I think the CPI data is up for debate. The markets have priced it in unless it reaches the extreme, ”noted trader Pentoshi. To discuss on twitter.

He added that the “real” potential market momentum will be from the macro side next week when the Federal Open Market Committee (FOMC) releases guidance on the central bank’s policy outlook and buying policy.

Commentators argue that an increase in the descending rate – a reduction in security purchases – will put pressure on risky assets, causing Bitcoin’s performance to decline. For Arthur Hayes, the former CEO of the derivatives platform BitMEX, this will only be reversed when the Fed returns to “business as usual”.

“For those deciding whether to allocate more fiat to crypto, it has to wait. I don’t see that making money is free time or easier. So if the Fed sits on the sidelines until the dust settles after March 2022 or June 2022, the Fed will raise rates, ”he wrote in his latest website post on Thursday.

“Look for risk asset prices to rise when the Fed rises, followed by a quick resumption of zero interest rates and aggressive bond purchases. . “

“Basis takes time”

One such forecast relates to existing medium-term projections for Bitcoin, which will peak its cycle in 2022 – not this month, as previously expected.

“The bottoming out takes time. Unfortunately, you have. And we’re getting closer to that with Bitcoin, ”he says to advise Twitter followers.

“Then we have another big cycle in 2022. Everything is fine.”

He Add Compared to 2017, the five bull cycles after the last halving, Bitcoin is “probably” at the beginning of the peak rather than the end.

Separate data, which showed that price action was copying bitcoin from 2017 almost to now, is facing an important test this month.