The price of Bitcoin risks rising to its lowest weekly close since 2020 as markets hit inflation

Bitcoin (BTC) fell to its lowest level in two weeks on June 11, as the trading week ended on Wall Street with the Bears in the lead.

US inflation print fails

Data from Cointelegraph Markets Pro and TradingView tracked the BTC / USD pair, which earned $ 28,528 on Bitstamp, the lowest level since May 28th.

The pair fell in line with the stock markets on June 10, with the latter ending the week sharply lower – the S&P 500 and Nasdaq Composite lost 2.9% and 3.5% respectively.

This decline was driven by inflation data in the United States, which turned negative, contrary to expectations. As reported by Cointelegraph, annual inflation is at an all – time high of 8.6% since December 1981.

Responding, market commentators were thus firmly on the bearish side when it comes to future BTC price action.

“When we drop to $ 22,000 – $ 24,000 on bitcoin, they’ll call for a drop. Don’t be too fat when the time comes,” he said. declared Popular Crypto analyst Tony for his Twitter followers.

Filbfilb, co – founder of the Decenttrader trading series, is at the same time in comparison environment in a COVID-19 crash in March 2020. According to him, this year’s slow hemorrhage was more painful than the “catastrophic” price cuts at the time, which raised bitcoin to roughly $ 3 600.

“Inflation has not peaked, and neither has bitcoin,” said Michael Saylor, CEO of MicroStrategy, in a more positive attitude after the release of the data.

“In the current macro background, no matter how many charts a comma shows we are hitting historically oversold levels,” he said. replica PlanC, a popular Twitter account.

“As long as bitcoin remains associated with risky assets, I will not see a significant trend reversal any time soon. »

If it ended the week at current levels or below $ 29,450, the BTC / USD pair would be at risk of its lowest weekly close since December 2020.

Doubts about rate hikes arise

Looking ahead, decisions on rate hikes in response to inflation were expected to be a key focus in the coming week.

READ ALSO: BTC price ends longest lost streak in history – 5 things to know about bitcoin this week

Minutes from the Federal Reserve Open Markets Committee (FOMC), scheduled for June 14-15, will provide clues as to how aggressive policymakers are planning to raise prices.

“I think at some point the market will realize that inflation is not going away soon and that rates will remain relatively low,” he said. supported Twitter user with the pen name Daan Crypto Trades.

He also said that gold could give an early indication of this “old new trend” by rising from its current trade route.

“Gold could be the main driver of such a change. I keep a close eye on him. At the moment, we are still integrating the wrong factors, ”read one post from the day.

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