Bitcoin (BTC<\/a>) recovered above $48,000 on Dec. 10 after another fall took BTC\/USD to lows of $47,350 overnight.<\/p>\n Data from Cointelegraph Markets Pro<\/a> and TradingView<\/a>\u00a0showed the pair orbiting $48,300 at the time of writing as markets braced for November\u2019s Consumer Price Index (CPI) readout.<\/p>\n As Cointelegraph reported<\/a>, economists tip this month\u2019s year-on-year inflation data to beat October at 6.7%.<\/p>\n While last month\u2019s shock CPI news fuelled an uptick across Bitcoin and crypto assets, caution among analysts prevailed ahead of Friday\u2019s figures.<\/p>\n \u201cAt this point I think the CPI data is moot. Markets have priced it in unless it\u2019s to the extreme end,\u201d popular trader Pentoshi argued<\/a> on Twitter.<\/p>\n He added that the \u201creal\u201d potential market mover from the macro side should be next week when the United States Federal Reserve\u2019s\u00a0Federal Open Market Committee gives indications over the central bank\u2019s asset purchase taper policy.<\/p>\n Increasing the rate of tapering \u2014 decreasing asset purchases \u2014 would pressure risk assets, commentators say, leading to reduced performance for Bitcoin. For Arthur Hayes, former CEO of derivatives platform BitMEX, this would only reverse once the Fed returns to \u201cbusiness as usual.\u201d<\/p>\n \u201cFor those who are deciding whether to allocate more fiat into crypto, it pays to wait. I don\u2019t see money getting any free-er or easier. Therefore, it pays to sit on the sidelines until the dust settles after a March 2022 or June 2022 Fed rate hike,\u201d he wrote in his latest\u00a0blog post<\/a>\u00a0on Thursday.<\/p>\n \u201cWatch out for a puke fest in risk asset prices should the Fed hike, followed by a quick resumption of zero interest rate policy and aggressive bond purchases. When the Fed signals a return to business as usual, then it\u2019s time to back up the truck.\u201d<\/p><\/blockquote>\n Such a prognosis ties in with existing medium-term forecasts for Bitcoin putting its cycle top further on in 2022 \u2014 not this month, as previously slated<\/a>.<\/p>\n \u201cBottoms take time. Unfortunately, they do. And we\u2019re getting close to it with Bitcoin,\u201d he advised<\/a> Twitter followers. <\/p>\n \u201cAfter that, we\u2019ll get another big cycle in 2022. All good.\u201d<\/p><\/blockquote>\n He added<\/a> that compared to 2017, the last post-halving bull run year, Bitcoin was \u201cprobably\u201d more toward the beginning of its peak phase than the end of it.<\/p>\n Meanwhile, separate data, which has shown Bitcoin copying price action from 2017 almost to the day, faces a key test<\/a> this month.<\/p>\n<\/div>\n![](\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/e7d234a4-4236-471d-afe3-123a75a6a1d0.png\")
Taper tantrums<\/h2>\n
![\"\"](\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/cccfb084-ac5f-4411-8655-8c04579e2b6c.png\" "\\"\\"")
\u201cBottoms take time\u201d<\/h2>\n