Bitcoin spoofs $40K breakout as US CPI inflation data conforms to 7.9% estimates

Clyde H. Foy
9db001c4f16f0bc5bbb8ac08412d9fc0

Bitcoin spoofs $40K breakout as US CPI inflation data conforms to 7.9% estimates Market Update

Bitcoin (BTC) turned back time to February on March 10 as the latest U.S. inflation data sparked a bout of volatility.

91612912ca41c4da016848b74e20df68

Wheat gives Bitcoin a run for its money

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reacting strongly to February’s consumer price index (CPI) readout.

Despite matching forecasts at 7.9%, the print saw Bitcoin stage a smaller version of last month’s reaction, with a breakout above $40,000 followed immediately by a trip to 24-hour lows.

At the time of writing, Bitcoin traded at the same place it had done before the event.

“High inflation numbers are calling for faster hikes and potential QT, quantitative tightening, resulting in a stronger Dollar and people selling their risk-on assets. That’s the short-term reaction,” Cointelegraph contributor Michaël van de Poppe summarized.

“Such high inflation isn’t great, nonetheless. Long-term though; Bitcoin.”

The start of Wall Street trading meanwhile did not produce any noticeable changes to the short-term status quo.

The S&P 500 was down 0.6% at the time of writing, while burgeoning commodity prices — oil and wheat among others — remained center stage.

“Wheat is everything BTC wanted to be and more,” popular trader Pentoshi joked.

“A global reserve currency, inflation hedge, you can trade and carry in your pocket thats light weight. If you aren’t going to your local store right now and going all in Wheaties what are you even doing with your life?”

fa6acba56cbe8c613915b83419c00118

The U.S. Federal Reserve’s decision on raising its base rate was due March 16.

“Economy needs energy to run. Energy prices are soaring with no relief in sight,” Material Scientist, creator of monitoring resource Material Indicators, added on the day.

“Therefore, economic output (GDP) has and will continue to drop (Q1 at 0%, if Q2 also no growth = officially recession). Also, QT lol. Best bet in ’70s was commodities, energy, hard assets. Strap in.”

Western Union halts international Russia remittances

In a further development, money transfer service Western Union — traditionally a competitor-in-waiting for Bitcoin — announced that it would halt remittances to both Russia and Belarus.

“If only there was something that could replace these corporations and that’s kinda decentralized and no one really has control over and that you don’t have to physically carry around,” commentator WhalePanda reacted.

On both low and high timeframes, however, very little had changed for Bitcoin, market participants concluded.

Overnight, BTC/USD had printed another familiar move in the form of a “Bart” chart pattern, once again failing to hold $40,000 support.

Source

Total
1
Shares
Leave a Reply

Connect with



Your email address will not be published.

Previous Post
111812a812d6cfcefb948b10a1322c04

Объём торгов среди 100 крупных криптокитов Shiba Inu вырос на 880%

Next Post
015e08c0639d5466bb69b0a30504f492

Freeport-McMoRan plans aggressive copper investment in south-west US

Related Posts