On Tuesday, November 14, Bitcoin faced a decline, dropping below $36,500 ahead of the crucial release of the U.S. Consumer Price Index (CPI) data for October. Analysts emphasize the importance of this economic indicator for Bitcoin's performance, highlighting the cryptocurrency's sensitivity to inflation-related data.
The U.S. Securities and Exchange Commission (SEC) is set to make decisions on a dozen spot Bitcoin Exchange-Traded Fund (ETF) applications between November 9 and November 17. This is also considered a key factor that could positively impact Bitcoin by injecting a substantial amount of funds into the market.
If the CPI data for October reveals an inflation rate higher than expected, it may provide the central bank with more room for interest rate hikes, potentially impacting the broader financial market and risk-bet assets such as cryptocurrencies.