Bitcoin Price Volatility Ahead of Federal Reserve Decision
Bitcoin’s price has seen notable volatility ahead of the Federal Reserve’s interest rate decision later today, retracing from a recent high of $108,000 to hover around $104,000. The move comes amid a backdrop of mixed global economic signals, as fresh data highlights continued inflationary pressures in major markets.
European and UK Inflation Data
- UK inflation rose to 2.6% year-on-year in November, up from 2.3%
- Eurozone inflation settled at a final 2.2% for the same month, surpassing October’s 2% figure
UK and Eurozone Inflation Trends
In the UK, inflation rising aligns with forecasts but signals a steady uptick from October’s 2.3%. Core inflation increased to 3.5%, reflecting persistent price pressures. In Europe, inflation remained subdued, with the Euro Area’s core inflation steady at 2.7% year-over-year in November. Meanwhile, construction output grew marginally by 0.2%, recovering from a contraction the previous month.
UK Producer Price Index (PPI) and US Housing Market Data
- UK PPI data showed mixed trends, with input costs contracting by 1.9% annually
- US building permits increased 6.1% in November to 1.505 million
- Housing starts fell 1.8% to 1.289 million
Trading Economics Calendar also reported that US housing market activity showed resilience, with building permits rising 6.1% in November, outpacing forecasts. However, housing starts declined by 1.8% month-over-month, reflecting lingering challenges. The current account deficit widened to $310.9 billion in Q3, with persistent trade imbalances as domestic demand remained robust.
Market Uncertainty and Bitcoin’s Sensitivity
The landscape aligns with investor uncertainty as markets await clarity from the Federal Reserve. Bitcoin’s recent volatility shows it remains sensitive to macroeconomic developments, with its retracement reflecting caution as traders assess the potential implications of the Fed’s decision on liquidity and risk assets.
For updates on the Federal Reserve decision and its impact, follow CryptoSlate’s coverage.
