Bitcoin Price Forecast: BTC slips below $75,000 ahead of US CPI data

Meanwhile, traders are now focused on the upcoming US October Consumer Price Index (CPI) data on Tuesday, which could influence Federal Reserve (Fed) rate-hike expectations and trigger fresh volatility in the Crypto King.

US CPI in focus

All eyes remain on the high-impact US CPI data, which could determine whether risky assets such as BTC recover or extend losses sharply.

Last week’s stronger-than-expected US payrolls reinforced expectations that the Fed could keep interest rates higher for longer. According to the CME Group’s FedWatch Tool, traders are now pricing in over an 80% chance that the US central bank will raise borrowing costs again in December. This macroeconomic outlook has continued to support the US Dollar (USD) while weighing on risky assets such as BTC, though USD bulls are waiting for the US CPI report before placing fresh bets. 

Tuesday’s inflation data will be watched for more cues on the Fed’s policy path. A hotter-than-expected reading could increase expectations of a rate hike, putting further pressure on risk assets.

Meanwhile, on the geopolitical front, mixed signals over US-Iran peace talks keep risk premium in play, dampening risk appetite. US President Donald Trump said that there is positive momentum towards ending the war on Iran, and that a resumption of strikes is quite unlikely, declaring the conflict effectively over.