{"id":512072,"date":"2022-12-12T05:07:08","date_gmt":"2022-12-12T10:07:08","guid":{"rendered":"https:\/\/wncen.com\/?p=512072"},"modified":"2024-06-11T10:08:13","modified_gmt":"2024-06-11T10:08:13","slug":"bitcoin-drops-pre-cpi-fomc-scenarios-to-prepare-for","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/bitcoin-drops-pre-cpi-fomc-scenarios-to-prepare-for\/","title":{"rendered":"Bitcoin Drops Below $17,000 Pre-CPI And FOMC – Scenarios To Prepare For This Week"},"content":{"rendered":"
A week could not be more important for Bitcoin and the broader crypto market! On Tuesday, at 08:30 ET, there will be the release of the Consumer Price Index (CPI).<\/p>\n
Just one day later, on Wednesday, December 14 at 14:00 ET, the Federal Open Market Committee (FOMC) will hold its last meeting of the year. For the fourth time this year, there will be an updated forecast for inflation and interest rates (dot plot).<\/p>\n
Generally, there is a simple base case scenario: if the numbers are better than expected, there will be a rally for risk-on assets like Bitcoin. If the CPI falls short of expectations, Bitcoin could face a new bear market low.<\/p>\n
Did Bitcoin Overreact To The PPI?<\/h2>\n
To assess how likely both scenarios are, it is also worth looking back at the recent producer price index (PPI) release. The PPI was higher than expected<\/a>.<\/p>\n