Bitcoin is all over the place ahead of U.S. inflation data

US inflation data for November, expected to show a 3.1% increase in CPI, is poised to influence Federal Reserve interest rate decisions. Bitcoin has been exhibiting volatile movement ahead of this critical economic indicator. Should the inflation data meet expectations, the Fed may decide to keep interest rates unchanged, which could spark a rally in Bitcoin and other cryptocurrencies. On the other hand, exceeding inflation expectations might result in the Fed raising rates, negatively impacting Bitcoin. These dynamics underscore the cautious approach traders are adopting towards Bitcoin's long-term outlook, while maintaining vigilance over short-term volatility, especially in the days leading up to the inflation announcement.