KronosSlott
  • Altcoin
  • Bitcoin
  • Blockchain
  • Ethereum
  • Litecoin
  • Gambling

Subscribe to Updates

Get the latest Crypto news from kronosslott.

What's Hot

BTC Price Is Steady Above the $23K Support Level

January 29, 2023

What is going on with Aptos’ price?

January 29, 2023

Gala Price Prediction for Today, January 28: GALA/USD Trades Above $0.060 as a Retracement May Follow

January 28, 2023
Facebook Twitter Instagram
  • Affiliate Disclosure
  • Anti Spam Policy
  • Cookie Policy
  • Privacy Policy
  • Terms & Conditions
Facebook Twitter Instagram
KronosSlott
  • Altcoin
  • Bitcoin
  • Blockchain
  • Ethereum
  • Litecoin
  • Gambling
KronosSlott
Home » Bitcoin Could See More Pain As Inflation Spikes

Bitcoin Could See More Pain As Inflation Spikes

adminBy adminOctober 11, 2022No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Reddit Telegram Email
Bitcoin Price
Share
Facebook Twitter LinkedIn Pinterest Email


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.

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 XRP.

BTC’s price moving sideways on the 1-hour chart. Source: BTCUSDT Tradingview

Bitcoin Trapped Between Global Macro Forces

According to trading desk QCP Capital, after the Ethereum “Merge”, the migration from Proof-of-Work (PoS) to a Proof-of-Stake (PoS) consensus, was successfully completed, and the sector lost its final bullish narrative. Now, macro factors are the only thing exerting influence.

Thus, Bitcoin, Ethereum, and other cryptocurrencies are increasing their correlation with traditional assets and moving more and more in tandem with global economic forces. In that sense, the upcoming Consumer Price Index (CPI) print for September might put additional selling pressure on BTC’s price.

The U.S. Federal Reserve (Fed) is trying to combat the high levels of inflation, as measured by the CPI, by hiking interest rates and reducing its balance sheets. This is causing a negative effect on the value of almost every asset class except for the U.S. dollar. QCP Capital wrote:

USD continues to remain bid, as real returns on dollar outperforms every other asset class YTD. Commodities and Precious Metals showing grim figures (…). Amalgamation of global macro sentiment has driven correlations across assets back to extremes.  BTC correlation with equities and gold (positively correlated) at all-time highs (…).

However, their attempts have been futile as inflation is proving resilient and might continue trending upward. The upcoming September CPI print, to be published this next Thursday, will proving more clues into the current macroeconomic situation. QCP Capital said:

In that regard, all eyes are on the Fed and by extension on CPI print this Thursday, where uncertainty remains high. Sell-side economists are predicting a rise of approximately 0.4% m/m and 6.5% y/y in core CPI, carried by strong shelter inflation.

If the Fed insists on hiking interest rates, Bitcoin is likely to trend lower in the short term. QCP Capital views the “robust” demand in the U.S. job sectors as potentially negative as it contributes to inflation metrics and encourages the financial institution to maintain financial conditions tights.

Bitcoin Whales Push BTC Down, Look Out Below?

The Fed is already being pressured by U.S. allies to stop their interest rate hike program but to no avail. However, this pressure might contribute to a shift in the financial institution’s stance over the long run.

In the meantime, as the economic situation remains at extreme levels, Bitcoin’s upside potential will continue to be limited. In short timeframes, data from Material Indicators shows an increase in selling orders from investors (purple in the chart below) with ask orders of between $100,000 to $1 million.

As long as this trend continues, any attempts of reclaiming previous levels with result in rejection as have been happening over the past weeks.

#FireCharts CVD shows that historically, Whales (purple) with $100k-$1M market orders have had more influence on #Bitcoin price than Mega Whales (brown) with $1M-$10M market orders. Keep that in mind when you are trying to swim with the pod. pic.twitter.com/eVCqM5UTWo

— Material Indicators (@MI_Algos) October 11, 2022 





Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
admin
  • Website

Related Posts

Crypto Exchange Bybit to Add New Restrictions for Unverified Users, Update Withdrawal Limits – Exchanges Bitcoin News

December 12, 2022

What is a Doji candle pattern and how to trade with it?

December 12, 2022

Bitcoin Price Slides As Markets Brace For Fed Policy Decision And Inflation Data

December 12, 2022

Comments are closed.

Don't Miss

BTC Price Is Steady Above the $23K Support Level

Blockchain January 29, 2023

Join Our Telegram channel to stay up to date on breaking news coverage Bitcoin’s Consolidation…

What is going on with Aptos’ price?

January 29, 2023

Gala Price Prediction for Today, January 28: GALA/USD Trades Above $0.060 as a Retracement May Follow

January 28, 2023

OXT/USD Rises Above $0.10; What Next?

January 28, 2023
Stay In Touch
  • Facebook
  • Twitter
  • Pinterest
  • Instagram
  • YouTube
  • Vimeo
Our Picks

BTC Price Is Steady Above the $23K Support Level

January 29, 2023

What is going on with Aptos’ price?

January 29, 2023

Gala Price Prediction for Today, January 28: GALA/USD Trades Above $0.060 as a Retracement May Follow

January 28, 2023

OXT/USD Rises Above $0.10; What Next?

January 28, 2023

Subscribe to Updates

Get the latest Crypto news from kronosslott.

About Us
About Us

Your source for the serious news. This website is crafted specifically to for crazy and hot cryptonews. Visit our main page for more tons of news.

We're social. Connect with us:

Facebook Twitter Pinterest YouTube WhatsApp
Categories
  • Altcoin (4)
  • Bitcoin (2,020)
  • Blockchain (781)
  • Ethereum (320)
  • Gambling (2,082)
  • Litecoin (55)
  • NFTs (2)
Our Picks

BTC Price Is Steady Above the $23K Support Level

January 29, 2023

What is going on with Aptos’ price?

January 29, 2023

Gala Price Prediction for Today, January 28: GALA/USD Trades Above $0.060 as a Retracement May Follow

January 28, 2023
©2022 –Kronosslott. All Rights Reserved. Kronosslott.com is an independent i-Gaming news site and casino comparison service. Every effort is made to ensure that the bonus offers listed here are accurate and up-to-date. However, we accept no responsibility for inaccuracies or errors. It is your responsibility to confirm the terms of any promotion you choose to accept. Looking to Advertise with us? Kronosslott is always looking for new partnerships. To Inquire please email kronosslott@gmail.com

Type above and press Enter to search. Press Esc to cancel.