The cryptocurrency market has been factoring in the recently released US CPI figures, which have underperformed expectations. Many speculate on how this crucial economic indicator will impact Bitcoin’s price trajectory.
In this article, we will delve into the potential implications of the inflation report on Bitcoin’s price, evaluating various factors that may contribute to an upswing or a continued downturn in the digital currency’s value.
Slowing Inflation: US Consumer Price Increases Ease in March
US consumer price increases slowed down in March compared to the high levels seen last summer. According to the Bureau of Labor Statistics, annual inflation measured by the Consumer Price Index fell for the ninth consecutive month.
For the 12 months ending in March, prices rose by 5%, a decrease from the 6% recorded in February, marking the smallest year-over-year increase since May 2021.
On a monthly basis, the CPI, which tracks price changes for a basket of goods over time, experienced a modest 0.1% uptick from February, compared to the previous increase of 0.4%.
Following the release of a virtually in-line inflation report, yields have dropped while Nasdaq futures have experienced an uptick.
This market response indicates that investors were concerned about a potential upside surprise, and are relieved that the results are largely in accordance with expectations.
Crypto Market Fundamentals
Bitcoin (BTC), the world’s most valuable cryptocurrency, has performed exceptionally well and gained tremendous traction, reaching the $30,000 mark On Tuesday. Although, the upticks in Bitcoin appear to be fading slightly, as it fell below the $30,000 barrier early Wednesday morning.
Meanwhile, Ethereum, the second most valuable cryptocurrency, declined more than 2 percent to $1,885, with a market value of $228.3 billion.
However, the cryptocurrency community is anticipating the release of the Ethereum Shanghai Upgrade today, which will enable gradual staking withdrawals.
Bitcoin’s value has risen dramatically recently, and there are several reasons for this.
The possible reason is that the United States released some dismal economic statistics, which frightened investors and increased people’s interest in Bitcoin, which they perceive as a solution to secure their money from inflation and other economic concerns.
Investors are anticipating upcoming statistics on inflation. Investors believe that if inflation remains high, the US government will be forced to stop its aggressive monetary tightening policies. This might favor Bitcoin since it could make it a more appealing investment option.
Bitcoin Price Soars as Investors Turn to Cryptocurrencies as Inflation Hedge
The global cryptocurrency market has been performing well lately, with a value of $1.22 trillion and a 24-hour gain of more than 3.00%. One reason for this is rising inflation, which makes investors worried about their investments losing value.
Bitcoin is a popular alternative because it’s not controlled by any government or central bank, making it less likely to be affected by inflation. As a result, Bitcoin’s price has increased and recently passed $30,000.
Another reason for the increase in BTC price is the growing adoption of cryptocurrencies by big companies like PayPal, which allows millions of merchants to accept Bitcoin.
Microstrategy’s Bitcoin Investment Turns Profitable as BTC Hits 10-Month High.
Microstrategy, a Fortune 500 company, invested in Bitcoin in 2020 when its price was around $10,000. Since then, the firm has accumulated 140,000 BTC, worth $4.17 billion, at an average price of $29,803 per BTC.
Despite facing criticism for incurring losses through the bearish market in the year 2022, Microstrategy’s Bitcoin investment has turned profitable as the BTC price hits a new 10-month high of $30,163.
This news is significant because it shows the growing importance of cryptocurrencies in the global financial ecosystem. Bitcoin has outperformed most traditional stocks and bonds this year and continues to gain adoption by public companies like Microstrategy and Tesla.
From the standpoint of technical analysis, the BTC/USD pair exhibits a clear upward trend as it approaches above the $30,250 mark. If this milestone is surpassed, the Bitcoin price might face resistance at $30,600 before progressing toward $31,000 or potentially even $32,250.
On the other hand, Bitcoin’s support remains consistently strong near the $28,900 level.
Top 15 Cryptocurrencies to Watch in 2023
To stay current with the latest ICO projects and altcoins, it is recommended to frequently consult the expert-curated list of the top 15 cryptocurrencies to watch in 2023.
By doing so, you will be better informed about emerging trends and opportunities within the crypto market.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
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