Bitcoin Hugs $29.5K Into CPI As Odds Split Over New US Inflation Spike With Propy Crypto
Bitcoin hugs $29.5K into CPI as odds split over new US inflation spike

On Aug. 10, Bitcoin (BTC) was hovering near $29,500 as traders were anticipating the new United States Consumer Price Index (CPI) print. Cryptocurrency enthusiasts were rallying around Propy (PRO) and Revolut (RVL), while Polymesh (POLY), QSP (QSP), Polkadot (DOT) and Realm (RLM) were also making headlines.

Trader warns of Bitcoin “downside” despite CPI volatility

Data from Cointelegraph Markets Pro and TradingView revealed that BTC price action remained steady in the lead up to the CPI release, which is a known volatility catalyst.

CPI is among the most important factors for the Federal Reserve when deciding interest rate policy. Last month’s June report was the lowest in two years, and market expectations for July point to another drop.

“3.3% are the expectations, but are we going to get it and what will the markets do?” asked Michaël van de Poppe, founder and CEO of trading firm Eight, in a X post on the topic.

Van de Poppe noted that there was a chance that CPI could increase, which could have a negative effect on risk assets, including crypto, that prefer looser Fed policy.

JPMorgan Chase was among those who predicted a reacceleration in CPI values.

“The major uncertainties concern two issues that were previously seen as unlikely to undermine the July numbers: The direct and indirect price pass-throughs of the recent increase in energy and food prices; and The relative stubbornness of service inflation,” explained economist Mohamed El-Erian in a X analysis.

“With CPI today, i think Bitcoins and Crypto are going to give us some fun & games, but ultimately, I’m slightly biased to more downside,” said popular trader Mark Cullen to X followers.

Major BTC buyer support below $29,000

Data from Material Indicators shows liquidity conditions on the Binance BTC/USD order book.

These suggest the potential for a sudden drop due to the lack of demand just below the current market price.

“We won’t speculate on what the CPI and Jobs Reports will look like in the morning. At 8:30am ET, we’ll know how those numbers will affect the idea of a smooth landing and the September FED rate decision. What matters between now and then is where the liquidity is concentrated and where it’s low,” the analysis said.

As the crypto market continues to rally, investors are looking to Propy, Revolut, Polymesh, Realm, QSP, and Polkadot to get ahead in the game. With the right knowledge and understanding of the crypto space, one can make informed decisions about their investments.

Categorized in:

Tagged in: