US CPI Down 3.1%, Will Bitcoin Recover?

<p>&nbsp;"Now it looks weak, but will the price be volatile during the FOMC later?"</p><p><br /></p><p>The price of cryptocurrency king Bitcoin (BTC) maintained its position below $41,500 as yesterday's United States (US) Consumer Price Index (CPI) data release for November was 3.1% as expected by market participants.</p><p><br /></p><p>There is no denying that BTC prices have recently seen a pullback ahead of major macroeconomic events, but holders were relieved when Labor Department data revealed a 0.1% increase in US inflation while the all-items index rose 3.1% annually.</p><p><br /></p><p>While core CPI excluding food and energy recorded an increase of 0.3% then core inflation on an annual basis rose 4% which reflected market expectations from the November data.</p><p><br /></p><p><br /></p><p>Investors are looking forward to the economic data to get an idea of the trajectory of the economy plus the drop in inflation has led to market speculation about a potential policy shift by the Federal Reserve (Fed).</p><p><br /></p><p>It is expected that the price of BTC will probably see a fluctuating movement to either $40,335 or $39,580 which is quite significant during the Federal Open Market Committee (FOMC) meeting tomorrow at 3 am local time.</p><p><br /></p><p>According to crypto investor and analyst Axel Bitblaze on his X account, the current decline in BTC and altcoin prices is predicted to be short-term only, so investors may soon buy digital assets.</p><p><br /></p><p>As of this writing, the price of BTC which is currently trading at $41,061 is still recording a 1.39% gain in the last 24 hours with a market capitalization of $803 billion then a 6.73% decline over the last week.</p>