NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: LINK Price Climbs Following Chainlink's Deal With US Commerce Department, Eyes $30
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: LINK Price Climbs Following Chainlink's Deal With US Commerce Department, Eyes $30

More Downside For Bitcoin? CPI New Numbers Could Call For Early Taper

Julia Arvelaiz
Julia Arvelaiz
1 year ago
3 mins read
Bitcoin

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The stock markets and Bitcoin’s price performance might be hitting a bumpier road after the next Consumer Price Index release. During the year the Fed has been clear about an upcoming tapering, and now that new –and higher– CPI metrics are expected, the taper is likely to fasten its pace and the markets to suffer.

The central bank is expected to start reducing its net asset purchase month by month by $10 billion for Treasury securities and $5 billion for agency mortgage-backed securities. This has raised fear over the traditional and crypto markets as prices are expected to be affected by a reduction in the global market’s liquidity. Previous tapering scenarios have seen yields fall and government bond prices rise.

Costumers who have experienced the rise in prices this year have low expectations for the Consumer Price Index’s results to come. The red signals send a reminder of Jerome Powell’s previous words: “we are prepared to adjust the pace of purchases if warranted by changes in the economic outlook,”

Similarly, James Bullard, President of Federal Reserve Bank of St. Louis, had said in an interview with Bloomberg that they could “move faster” and speed of the taper “if it is appropriate”.

I think it behooves the committee to go in a more hawkish direction in the next couple of meetings so that we are managing the risk of inflation appropriately,

Bullard’s comments followed the U.S. Labor Department October’s report of a 6.2% yearly rise in the consumer price index, a 31-year high. This “further aggravated the market’s concerns about inflation, voices for accelerating Taper has become increasingly loud” said Huobi Research.

It is not the first policy retreat for the Fed, but it is seen as the most dramatic one, as it is a turnaround from unmatched support to financial markets. The general question now is whether it will look “appropriate” after the CPI report. If so, the markets are looking red to the experts.

Related Reading | Why Closing Out The Year Below $50,000 Could Be Bad For Bitcoin

What Happened To The Bitcoin $100k Dream?

At the beginning of November, Bitcoin dipped –falling almost by $2000– as the Federal Reserve announced it would gradually reduce the bond purchase. Powell had accepted that U.S. inflation numbers are not “transitory”, thus suggesting accelerating the taper as he saw a stronger economy and hot inflation.

Bitcoin
Bitcoin trading at $47,534 in the daily chart | BTCUSD on TradingView.com

There are current considerations of wrapping things up a few months earlier than initially planned. The future two-day meeting on December 14-15 will tell if the Fed will double its taper pace to $30 billion a month. A faster taper could be used to fight the surging inflation by raising interest rates earlier, but this could bring times of high volatility for the markets.

Louis Navellier, one of Wall Street’s famous growth investors, had commented:

The Fed is tapering, and this should create a correction in risk assets, of which bitcoin is a part. The more the Fed tapers, the more volatility we should see in both stocks and bonds — and yes, bitcoin, too.

Huobi Research explained that the projection behind the previous expectation for Bitcoin’s price to flirt with $100k by the end of this year “ignored the impact of external macro changes on the market.”

The Huobi report claims “the extremely loose monetary policies” –the central bank’s release of liquidity– during times of Covid was also carrying Bitcoin’s price uphill –as well as other risky assets– to the remarkable surge we saw this year. That also means the taper is “the turning point of global liquidity growth”.

As we observed during March last year, due to the shortage of market liquidity, Bitcoin price dropped by nearly 50% in one day…

The concerns about inflation have turned into a difficult landscape the future prices for various high-risk assets. However, this wouldn’t be Bitcoin’s first low, and we have seen it bounce back before.

Related Reading | Despite Red Bitcoin, On-Chain Signals Flip Green

Tweet123Share196ShareSend
Julia Arvelaiz
Julia Arvelaiz

Julia Arvelaiz

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

트럼프의 '아메리칸 비트코인' 나스닥 상장, BTC 2.7억 확보…다음 주목받는 코인은

트럼프의 ‘아메리칸 비트코인’ 나스닥 상장, BTC 2.7억 확보…다음 유망 코인은?

암호화폐 생태계에 기업 자금이 폭발적으로 유입되고 있다. 트럼프의 지지를 받는 채굴업체 아메리칸 비트코인 코퍼레이션(American Bitcoin Corporation, ABTC)...

Soyeon Lee 2 hours ago
BTC Hyper

BTC Hyper presegel 13M: Najboljša kriptovaluta za nakup?

Bitcoin ima tržno kapitalizacijo več kot 2,2 bilijona dolarjev in ostaja merilo za digitalno vrednost. Vendar pa njegova zasnova daje...

tanjapotocnik 2 hours ago
meme kovanci

Najboljši meme kovanci, ki jih lahko kupite zdaj za manj kot 1 EUR

Trg kriptovalut se danes še naprej giblje v stranskem trendu, vendar nekateri najboljši meme kovanci kažejo potencial za velike dobičke...

tanjapotocnik 2 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Bitcoin Ethereum crypto news

Bitcoin To $175k, Ethereum To $17k Before Dot-Com Style Crash, Economist Warns

Jake Simmons 12 minutes ago
xrp koers, ripple koers, xrp nieuws, ripple koers, xrp verwachting

XRP bulls voorspellen $2,94 doorbraak in september – is dit echter realistisch?

Lars Diederiksen 53 minutes ago
WLFI

WLFI Token Controversy: Justin Sun Denies Selling Rumors Following Address Blacklist

Rubmar Garcia 2 hours ago

Premium Sponsors

Press Releases

  • Dogecoin sẽ chạm mốc 4 đô la

    Dogecoin sẽ chạm mốc 4 đô la? Maxi Doge có thể...

    2 hours ago
  • イーサリアム...

    2 hours ago
  • ビットコイン...

    2 hours ago
  • シバコイン...

    2 hours ago
  • A 3 legjobb kriptovaluta, amit ma megvásárolhatsz, mivel ez a presale forradalmasítja a meme-piacot 1000x potenciállal

    A 3 legjobb kriptovaluta, amit ma megvásárolhatsz, mivel...

    3 hours ago

Newsletter

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.