Bitcoin (BTC) Price to $45,000 —Will US Inflation CPI Data Trigger Bullish Reaction?

 Bitcoin Price Insights: 

• Bitcoin (BTC) price dipped below $37,000 on Monday as investors began to make strategic moves ahead of the US CPI Inflation data release. 
• The US Bureau of Labor Statistics is set to publish the latest data on US Inflation and Consumer Price Index (CPI) on Tuesday, November 14.
• The 12,430 BTC Whale Transactions recorded on Monday are the lowest for November, signaling that large corporate investors have reduced their trading activity in anticipation of the CPI data release.

Bitcoin (BTC) price slid toward $36,500 on Monday as traders began to make strategic moves ahead of the US CPI Inflation data release. On-chain data analysis examines how large institutional investors’ recent trading activity could impact BTC price action.

Markets Have Priced-In Slightly Higher Inflation 

Bitcoin’s short-term price prospect hangs in the balance as markets anticipate the official US inflation report, this week. The US Bureau of Labor Statistics is scheduled to release Inflation and Consumer Price Index (CPI) data on November 14.

According to economic data tracker, TradingEconomics, the markets have already priced in a consensus CPI figure of 307.81. With this slightly higher than the last months’ actual CPI figure of 307.79, corporate entities and HNIs holding Bitcoin have taken on a skittish trading disposition. 

Published monthly, the United States Consumer Price Index (CPI) measures periodic changes in the prices of strategic consumer goods and services. The CPI basket includes everything from household food items to automobiles to rent. Essentially, it provides information on real-time inflation data in the economy.  

During periods of high inflation, risk-on assets like stocks and Bitcoin often receive lower demand and vice versa. 

Hence, with the markets anticipating a slightly higher inflation figure on Tuesday, BTC demand is expected to flatten in the coming days.

Bitcoin Demand Among Corporate Investors Has Flattened This Week

Bitcoin demand among corporate entities and high net-worth investors has slowed considerably this week. This comes after Bitcoin holders were spotted shifting 30,000 BTC into crypto exchange wallets over the weekend. 

This flailing demand could be attributed to the market’s consensus expectation that this month’s inflation figures will surpass last months’. 

On-chain data pulled from IntoTheBlock reveals that Bitcoin large investors have reduced their trading activity significantly. As depicted in the chart below, the 12,430 Large BTC Transactions recorded on November 12 is the lowest for the month. 

In the crypto space, the Large Transaction Count is a financial metric that tracks the trading activity of large corporate entities and high net-worth investors. It sums up the daily number of BTC transactions that exceed $100,000.  

A decline in the number of Large Bitcoin Transactions to a monthly low is a clear indication that institutional investors and traders have taken on a subdued disposition this week. 

In summary, the on-chain data points analyzed above, affirm that investors are taking a neutral stance on BTC ahead of the CPI data release. Hence, if the official CPI data exceeds the market consensus expected figure of 370.81, Bitcoin’s current price consolidation phase may evolve into a downswing toward $35,000. 

On the flipside, if inflation data falls short of the market consensus, BTC will likely receive a bullish boost to retest $38,000 before the week runs out.