Bitcoin and stocks are anxiously awaiting inflation figures

Because of the US shutdown, macro data is far fewer available than usual. The stock markets and Bitcoin have begun a small recovery since the US President dropped a small bombshell two weeks ago (threatening a new trade war with China). That has since subsided but all that good news could be forgotten come Friday.

That’s when the new inflation figure comes out, and that one will determine the Federal Reserve’s response to the (hoped-for) interest rate cut.

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The euphoria surrounding Bitcoin’s ATH at the beginning of this month seems to be well behind us. The largest digital currency is clearly struggling to build on this momentum and currently appears stuck in a fairly wide trading range between $105,000 and $120,000, without any clear breakout either way.

Friday’s inflation figure will likely be the next point of reference for the markets and Bitcoin.

This inflation figure comes amid significant economic uncertainty in the United States, as officials and economists lack recent labor market data due to the ongoing government shutdown.

If it comes in above or below expectations, Bitcoin could see a fairly strong move, just as it did two weeks ago with Trump’s Friday evening announcement. Let’s hope for a low inflation figure, which could provide further impetus to Bitcoin.