bitcoin‘s Rally Pause

bitcoin‘s meteoric five-week rally, driving its price up by nearly 40%, has hit a temporary pause around the $37,000 mark. With excitement waning over the potential approval of a spot bitcoin ETF, investors are now turning their attention to the upcoming Consumer Price Index (CPI) report set to be released today.

Consumer Price Index (CPI) Report

Economists expect the October CPI figures to reveal a slowdown in monthly and yearly inflation rates, though both would still remain above the U.S. Federal Reserve’s 2% target. The report’s impact on bitcoin is uncertain, as it could either provide a boost if inflation slows more than expected, or lead to a pullback if inflation surges, prompting investors to reconsider their asset allocations.

United States Securities and Exchange Commission (SEC) and bitcoin ETFs

Meanwhile, the United States Securities and Exchange Commission (SEC) is on the verge of potentially approving all 12 pending spot bitcoin exchange-traded fund (ETF) applications by Nov. 17. However, even if these approvals come through, investors may need to wait over a month before these products become available for trading, owing to the two-step process required to launch an ETF.

ethereum ETFs and BlackRock

In addition to bitcoin, ethereum is also taking center stage, as asset management giant BlackRock seeks SEC approval for an ethereum-focused ETF. This development is seen as a significant milestone in the path toward mainstream cryptocurrency acceptance.

bitcoin Holds Steady as CPI Report Looms: Will Inflation Data Fuel a Rally or a Retreat?

After an impressive five-week rally that saw the price of bitcoin (BTC) surge by nearly 40%, the world’s most popular cryptocurrency has hit a temporary pause, hovering around the $37,000 mark. Investors who were previously fueled by the prospect of a spot bitcoin ETF approval now find themselves looking to the Consumer Price Index (CPI) report scheduled for today as the next potential catalyst for market movement.

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Consumer Price Index (CPI) Report Expectations

Economists are eagerly awaiting the release of the October CPI data, which is expected to provide insights into the state of inflation. Analysts anticipate that the monthly headline CPI will have slowed to 0.1% from the 0.4% recorded in September. The year-over-year CPI figure is also predicted to have dipped to 3.3% from September’s 3.7%. Meanwhile, the core CPI, which excludes food and energy costs, is projected to have remained unchanged from September, with a monthly increase of 0.3% and a year-over-year rise of 4.1%.

bitcoin and Inflation

The relationship between bitcoin and inflation is an intricate one. On one hand, higher interest rates, which can be a response to rising inflation, compete with risk assets like bitcoin for investors’ funds. In such a scenario, the allure of a lower interest rate environment may provide a boost to the cryptocurrency. However, the inverse also holds true.

SEC Poised to Approve bitcoin ETFs, Expanding Crypto Investment Landscape

In related news, the cryptocurrency market is buzzing with anticipation as the United States Securities and Exchange Commission (SEC) gears up to potentially approve all 12 pending spot bitcoin exchange-traded fund (ETF) applications by Nov. 17. This decision could mark a significant milestone in the journey of cryptocurrencies toward mainstream acceptance and investment legitimacy.

Approval Process for bitcoin ETFs

However, even if the SEC grants approval for these spot bitcoin ETFs by Nov. 17, investors should be prepared for a potential waiting period of over a month before these products become available for trading. This delay is primarily attributed to the two-step process involved in launching an ETF.

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ethereum ETFs and BlackRock

The spotlight on the cryptocurrency market has recently expanded beyond bitcoin, with ethereum gaining prominence as a leading digital asset. In a significant development, Nasdaq has filed the 19b-4 form with the SEC on behalf of BlackRock, a powerhouse in the asset management industry with approximately $9 trillion in assets under management.

Price Overview

CoinStats indicated that BTC’s price dropped 1.39% over the past 24 hours. Subsequently, BTC’s price stood at $36,405.44 at press time. Despite the latest drop, BTC’s weekly performance remained at +4.25%. The longer-term timeframes for BTC were also well in the green zone. CoinStats data showed that the leading cryptocurrency was up around 36% for the month and approximately 123% over the past 12 months.

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