Bitcoin Approximately $ 20,000 Ahead of CPI, Fed warns of danger of 'Blowing' Economy

Bitcoin (BTC) rose from its overnight low level on July 13 as markets waited nervously on U.S. inflation data.

One hour candle chart of the BTC / USD (Bitstamp) pair. Source: Trade View

Countdown to ‘very high’ inflation revealed

According to data from Cointelegraph Markets Pro and TradingView, the BTC / USD pair rose from $ 19,250 to $ 19,900 at the time of writing, up 3.3% on the day.

Three hours away from the release of consumer price index (CPI) data for June, crypto markets showed few signs of projected volatility.

Earlier, the US government warned that CPI figures were expected to be “very high”, with unofficial projections from other sources indicating that inflation was rising by almost 9% year-on-year.

NEW # inflation record high for the year!
At least that’s what I’m now predicting for June’s CPI, released in 5 days
I forecast 8.8% year on year, breaking the previous one
A 41 year record of 8.6% set last month
Month on month this would be 1.2% pic.twitter.com/5IochMzP6f
– TheHappyHawaiian (@ThHappyHawaiian) July 9, 2022

NEW #inflation record for the year! Anyway, this is what I look forward to now for the June CPI, published in 5 days. I expect 8.8% year-over-year, exceeding the previous 41-year high of 8.6% set last month. Month over month, that would be 1.2%. pic.twitter.com/5IochMzP6f
– TheHappyHawaiian (@ThHappyHawaiian) July 9, 2022

“The CPI will come out at 8.8% today. Look. I have a strong feeling that that is the number, ”he said United Famous crypto YouTuber Ben Armstrong.

Meanwhile, the U.S. Dollar Index (DXY), which was just over 108 after a corrective move from fresh highs of 20 years, was offering its time.

*Hourly chart of the US Dollar Index (DXY). Source: Trade View*

Regarding the possibility of the Federal Reserve continuing to raise interest rates to control inflation, one analyst argued that the maneuver room was already small, if not existent.

“We are at the point where the diet would normally stop raising rates and start slowing down again,” he said. Explain TheHappyHawaiian Reddit and Twitter user:

“As they prepare to reach 75 basis points in a few weeks, they would be consciously blowing up the system.”

An accompanying chart from the nutrition pivot indicator showed the changes in the direction of feed rates over the last thirty – three years and indicated that the increases had already reached the maximum allowable levels.

*Pivot nutrition indicator chart. Source: @TheHappyHawaiian / Twitter*

A trader emphasizes the importance of the $ 22,000 threshold

Predictably, altcoins kept up with BTC ahead of inflation numbers.

Also Read: Ether Price Prices Likely To Crash Bearishly And Fall 20% Against Bitcoin

Ether (ETH), having lost 8% the day before, was hovering around $ 1,075 at the time of writing, but is still down 6.3% over the past seven days.

*One hour candle chart of ETH / USD (Binance) pair. Source: Trade View*

Other signals in the top 10 currencies were in line with fixed market capitalization on daily time scales.

For Cointelegraph contributor Michaël van de Poppe, however, there was still reason to believe that selling pressure was circumstantial rather than a longer – term trend.

“Yes, the markets should be corrected, but at present cryptocurrency and bitcoin valuations are much lower than they should be, due to the mandatory liquidation of 3AC, $ LUNA, and more., Again,” he said. supported :

“That’s why a breakout through $ 22,000 will also accelerate the price of an advance towards $ 30,000.”

The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of Cointelegraph.com. All investments and trades involve risk, you should do your own research before making a decision.