Bitcoin (BTC<\/a>) fell on the Dec. 9 Wall Street open as United States economic data appeared to disappoint markets.<\/p>\n Data from Cointelegraph Markets Pro<\/a> and TradingView<\/a> showed BTC\/USD dipping to come closer to $17,000 after passing the level<\/a> overnight.<\/p>\n The pair reacted badly to U.S. Producer Price Index (PPI) data, which despite being above expectations still beat the readout from the month prior.<\/p>\n \u201cBit of an over reaction towards PPI, which has been dropping significantly from last month, but less than expected,\u201d Micha\u00ebl van de Poppe, founder and CEO of trading firm Eight, responded<\/a>. <\/p>\n Van de Poppe, like others, noted that the crux of macro cues would come next week in the form of Consumer Price Index (CPI) print for November.<\/p>\n \u201cCPI next week is the big trigger, just like it was earlier this month,\u201d he added.<\/p>\n CPI could be a seminal point, trading firm QCP Capital continued, as if it were to continue its downward trend, markets may get an even stronger conviction over lower inflation greeting the new year.<\/p>\n The Federal Reserve\u2019s Federal Open Market Committee (FOMC) meeting days later, where policymakers decide on interest rate hikes, should add fuel to the fire.<\/p>\n \u201cTuesday\u2019s CPI will yet again be \u2018the most important CPI release ever\u2019, this time because the market has set it up to be with its epic 2-month short squeeze rally,\u201d QCP wrote in a market update on the day.<\/p>\n \u201cAt the FOMC, Fed members will release their updated projections of inflation and interest rates. Markets will focus on where they forecast inflation next year, as well as where they see rates in 2023 and 2024. Both these events are the last remaining hurdles for the rally into year-end.\u201d<\/p><\/blockquote>\n Analysts acknowledged that if CPI were to disappoint, it would potentially \u201cinvalidate\u201d the stocks rally so far. A 50-basis-point rate hike had a 77% probability of occurring, according to CME Group’s FedWatch Tool<\/a>.<\/p>\n U.S. equities were flat after the first hour’s trading, with PPI failing to make a significant dent in performance.<\/p>\n Related:\u00a0GBTC ‘elevator to hell’ sees Bitcoin spot price approach 100% premium<\/a><\/em><\/strong><\/p>\n For macro economist and stocks analyst James Choi, this was to be expected, given that the Fed was already considering decreasing the pace of its rate hikes.<\/p>\n “The FED already pivoted its course. Today’s PPI won’t make a dent to Powell’s plan. It’s 50bp next week, then that’s it,” he\u00a0forecast<\/a>, also saying that his calculations predicted a “much, much lower” CPI reading than many believed.<\/p>\n Meanwhile, U.S. dollar strength also simmered, the U.S. dollar index (DXY) attempting to make up for the previous day’s lost ground<\/a> on the back of PPI.<\/p>\n The views, thoughts and opinions expressed here are the authors\u2019 alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.\n<\/p>\n<\/div>\n![](\"https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/0b6d3d41-6f8b-4557-88bb-f334a8033114.png\")
Attention turns to Bitcoin vs. CPI “big trigger”<\/h2>\n
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U.S. dollar catches a break<\/h2>\n
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