No Pivot In Sight: Why Bitcoin Could See More Pain As Inflation Strengthens
Bitcoin trends lower moving towards the bottom of a range created in July when the cryptocurrency scored a multi-year low at $17,600. Now, BTC seems poised for further losses on low timeframes as macro forces remain in control of global markets. Related Reading: Avalanche Sits On A Time Bomb As Price Eyes $10, Will Price Escape This? At the time of writing, Bitcoin (BTC) trades at $19,000 with a 1% and 3% loss in the last 24 hours and 7 days, respectively. Other cryptocurrencies are following the general sentiment in the market with many giving back their low timeframe profits apart from....
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Macro analyst Lyn Alden explains why the Fed's efforts to curb inflation may take longer than expected and how they will impact the crypto markets. The Federal Reserve's efforts to battle inflation by rising interest rates and killing demand may have limited results as long as the supply side of the inflation problem won’t be fixed, according to macro analyst Lyn Alden. “Until they actually fix the supply side of certain things, like energy especially, but commodities broadly and logistics infrastructure, until that is improved, it's hard to have a more persistent fix to the inflationary....
The line of sight on U.S. inflation is anything but clear after the Labor Department reports the CPI's smallest yearly gain since 2015. So what does it mean for bitcoin?
As equity markets begin to teeter and volatility in the legacy system increases through deleveraging, it seems that more pain is imminent for the bitcoin price.
Bitcoin and Ethereum have reacted negatively to the Consumer Price Index (CPI) print in the United States. The metric is used to measure inflation in the U.S. dollar and hit 9.1% for June which represents an increase from May’s results. Related Reading | Social Dominance Rate Of Bitcoin Marks An All-Time High in 2022 At that time, the crypto market crashed the following days after the CPI print. This meant inflation was still soaring and hinted at more intervention from the U.S. Federal Reserve (Fed). High inflation translated into high pain for Bitcoin and other risk-on assets. At....
BTC, ETH, altcoins and stock prices crumbled in the face of a hotter than expected CPI report. Is there room for a short-term recovery? Crypto and stock markets are feeling the pain after the Sept. 13 inflation report printed an unexpectedly hot figure that showed headline inflation rising by 0.1% month-over-month.Even with gas prices falling to multi-month lows and a cooling housing market, core inflation saw a 0.6% month-over-month bump and year-to-year inflation sits at 8.3%. This chart from @TheTerminal shows why this #CPI number is so disappointing. The contribution of energy has....