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Bitcoin keeps steady at $ 20,000 as ECB warns inflation never to return to pre-COVID levels

Bitcoin keeps steady at $ 20,000 as ECB warns inflation never to return to pre-COVID levels

Bitcoin (BTC) held just over $ 20,000 after Wall Street opened on June 29, as the president of the European Central Bank admitted that the world would never return to low inflation.

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

Lagarde on inflation: “I do not think we will ever return to this period”

Data from Cointelegraph Markets Pro and TradingView showed that the BTC / USD pair looked volatile but volatile as it was still stuck in a tight range on the day.

US stock markets also remained calm after further losses in Asia. Meanwhile, in Europe, comments from central bank officials set the macroeconomic tone.

In particular, Christine Lagarde, President of the European Central Bank (ECB), seemed to confirm that inflation would remain high indefinitely.

“I do not think that we will ever return to this period of low inflation,” she told a press conference at the ECB Forum in Sintra, Portugal.

She was joined by Fed Chairman Jerome Powell, who was equally pessimistic about the outlook, relentlessly promising that inflation will hit the 2% target.

“That is our goal, that is our secret; we think that there are many ways to get there, to get back on track to 2% inflation while maintaining a strong labor market. We think we can do it, that’s our goal; there is no guarantee that we can achieve it, ”he said.

Bitcoin Bulls Defend 2017 High

Bitcoin did not respond to the comments, which went about two weeks before new U.S. consumer price index (CPI) data.

Meanwhile, Bitcoin analysts focused on the June monthly closure.

Content Indicators, a chain analysis platform, considered that a breakout should occur “very soon”, as the monthly candle was bound to disappoint.

“The bulls are defending the 2017 highs, but one day it will be almost impossible to print a monthly green candle,” she said. declared for followers on Twitter.

“There is always a green chance during the week. Expect volatility. One way or another, bitcoin will soon break out or crash. “

An accompanying chart showing the Binance exchange order book confirmed that interest in buying and selling in the BTC / USD pair was directly focused on current prices.

BTC / USD (Binance) order book. Source: Content Indicators / Twitter

As Cointelegraph reports, June 2022 was already on track to be the worst month since 2018.

#Bitcoin relies on support here (also seen in tweets from previous days), but it’s still hard. Further confirmation (eg $ 20,200 breakout) is required if we want to look up. If the support is not held, the area is another $ 19,300. pic.twitter.com/N6atAXrOZ4
– Michael van de Poppe (@CryptoMichNL) June 29, 2022

Prices continue to hurt institutional investors

Separately, MicroSstrategy increased its corporate bitcoin cash with a new purchase of 480 BTC, a move suggested by commentators.

Read also: No relief for Bitcoin Cash users as BCH drops 98% against bitcoin

Despite this smaller purchase than others, MicroStrategy CEO Michael Saylor questioned claims that the company could be liquidated due to a $ 205 million loan secured to acquire BTC.

“While the recent outsourcing of 480 BTC by Saylor may be relatively small, I think it mostly sends a message,” he said. replied William Clemente, Insightful SEO Analyst at Blockware.

“Despite all the criticism and claims that he is retiring from the bears, he is not in decline and is adhering to his long – term allocation strategy.”

However, a point made by Bitcoin Treasuries showed that MicroStrategy lost $ 1.4 billion on its BTC stock, the second in the material that Tesla lost nearly 50% of its investment.

Network payments Square also remained down $ 60 million on its $ 220 million allocation.

Bitcoin cash data from major listed companies (screen). Source: Bitcoin Treasury

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.

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