On October 31, Bitcoin's price dropped to $71,000 as new US macroeconomic data failed to instigate a rise in BTC's value.
Bitcoin Price Decline
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD retracing around 1.6% on the day. Bitcoin showed little reaction to the September release of the Personal Consumption Expenditures (PCE) index, aligning with expert forecasts.
Economic Data and Market Impact
Trading resource The Kobeissi Letter observed that core inflation for both PCE and CPI remains high. The anticipated 'Fed pivot' was delayed again. According to CME Group’s FedWatch Tool, the market expects no rate changes, with a 96% likelihood of a 0.25% cut next week.
Market Participants' Reaction
Trader and analyst Michaël van de Poppe suggested that nonfarm payrolls data on November 1 might bring more volatility. Meanwhile, trading resource Material Indicators observed Bitcoin whales decreasing their BTC holdings over the past day. Daan Crypto Trades noted over $500M+ in open interest were liquidated with just a -2% price move.
Investors continue to monitor US economic indicators in anticipation of November data to adjust their positions. Upcoming data points could significantly influence Bitcoin's volatility as the month closes.