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Bitcoin slides as US inflation jumps 9.1%

Bitcoin price slipped below $20,000 on Wednesday after headline US inflation data showed the consumer price index (CPI) came in hotter than expected.

Data by the US Labor Department showed CPI rose 9.1% year-over-year for the hottest move since 1981 and 1.3% month-on-month in June, the fastest since 2005. 

The data came in hotter than the estimated 1.1% month-on-month and 8.8% year-over-year, continuing the hot streak that has aligned with the unprecedented rise in the cost of living.

Bitcoin falls below $20,000

US stock futures fell sharply after the inflation report, with the S&P 500 futures dipping more than 1.5% and Nasdaq futures sliding by 1.9%. The Dow futures also fell, and were down more than 300 points, or -1% ahead of market open.

The reaction on Wall Street was also seen across the crypto market. As stock futures plunged, the top cryptocurrency Bitcoin dipped below the psychologically important level of $20,000.

The volatility pushed BTC/USD to lows of $18,892 on crypto exchange Coinbase. At the time of writing, Bitcoin price was down 4.8% in the past 24 hours, according to data on CoinGecko.

BTC/USD price fell below $19,000 on Coinbase. Source: TradingView

The rest of the crypto market was also seeing fresh downside pressure, with Ethereum down 4.8% near $1,000 and BNB, XRP, Cardano and Solana also nursing fresh losses of 3.7%, 2.5%, 6% and 5.7% respectively.

The post Bitcoin slides as US inflation jumps 9.1% appeared first on CoinJournal.

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Bitcoin steady as inflation data nears – Major turning point or further crash?

  • Bitcoin holds onto $19,000 as investors remain cautious of inflation numbers.

  • The price may weaken further if inflation rises faster than expected.

  • Bitcoin remains held by long-term focused investors.

Bitcoin BTC/USD trades at $19,796 as of press time. The level is already a support zone. The world’s largest cryptocurrency has held the level for a month. It signals that investors are circling the cryptocurrency after recent declines. However, inflation data on Wednesday will be a major event closely watched by Wall Street.

An inflation data on Wednesday by the US labor department will show how prices jumped in June. Faster inflation will stoke markets as it will call for a faster Fed move to tighten policy. Bitcoin will be under pressure at $19,000 if the numbers exceed estimates. Similarly, data showing cooling prices could allow Bitcoin to continue holding onto the $19,000 level. 

Although Bitcoin is under pressure, long-term focused investors remain convinced of a recovery. Coinbase Analytics data shows that investors hold 77% of the supply of the cryptocurrency. The number is close to the peak of 80% in January and higher than 60% of the bull run in late 2017. David Duong, Coinbase’s head of institutional research, says that short-term traders account for most sells. Whereas the inflation data will have an impact on Bitcoin price, investors should still see an opportunity at $19,000.

Bitcoin keeps $19,000 support intact

Source – TradingView

Technically, the MACD and moving averages flush bearish signals for Bitcoin. However, the cryptocurrency has kept the support intact. If inflation numbers grow further, Bitcoin could slide. The next support is at around $11,500. Prices could still recover before the next support as Bitcoin is a very volatile cryptocurrency.

Summary

We encourage a long-term hold for Bitcoin as volatilities remain in place. High inflation could lead to a further decline. The price could recover from the support zone if inflation cools.

The post Bitcoin steady as inflation data nears – Major turning point or further crash? appeared first on CoinJournal.