As US inflation continues to alarm, Bitcoin (BTC), which is the digital currency equivalent of bitcoin, fell below $80.000 at Wednesday’s Wall Street opening.
Important points
- Bitcoin’s price is under new downward pressure due to the US PPI inflation hitting its highest level since 2022.
- Crypto has been hit by increased odds that the Federal Reserve will tighten up financial policy.
- BTC Price Analysis: CME Futures Gap to remain as Resistance “until further notice.”
BTC price action loses $80,000 in fresh inflation blow
TradingView’s data revealed that April’s Producer Price Index (PPI) was released with a rise of nearly $79 500.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
PPI is delivered the same day as the Consumer Price Index print. surprise to the upside — a headwind for crypto You can find out more about this by clicking here.d risk assets due to the implied future tightening of financial conditions by the Federal Reserve.
“The April increase is the largest advance since rising 1.7 percent in March 2022,” an official news release The US Bureau of Labor Statistics stated.
“On an unadjusted basis, the index for final demand rose 6.0 percent for the 12 months ended in April, the largest 12-month increase since moving up 6.4 percent in December 2022.”
Change in the US PPI for one month. Source: BLS
The US-Iran war and its associated impact on oil prices thus continued to filter through to the economy, with even more serious upheaval to come.
“All of the data is very clear: consumers are about to face another wave serious pressure on spending power,” The Kobeissi Letter is a trading resource. reaction on X.
CME Group data shows that the results have further decreased the chances of the Fed lowering interest rates during its meeting in June. The odds are now just 1.4%. FedWatch Tool.
Fed’s target rates for its June 17th meeting (screenshot) Source: CME Group
The trading resource Mosaic Asset Company summarized risk on Monday. high oil pricesRisk-assets uptrend, and in particular, is the main driver.
“The prospect of rising interest rates on the short- and long-end of the yield curve could pose a challenge to stock market valuations,” In the most recent edition of their regular newsletter. The Market Mosaic.
“The easing bias in central banks around the world is shifting to a more hawkish stance.”
CFDs on WTI one-day crude oil chart. Source: Cointelegraph/TradingView
Bitcoin Futures: A gaping control problem “until further notice”
Bitcoin traders are still hopeful that BTC/USD will break through the current resistance.
Related: Bitcoin price history suggests 77% odds of new all-time high within a year
“Break above that ~$82K region and that gap at $84K will surely be filled. Likely continuing quite a lot higher at that point,” Daan Crypto Trades wrote in his latest X analysis.
Daan Crypto Trades described US stocks as recovering “nicely” The CPI numbers have improved since their initial insufficiency.
“Market mostly awaiting some clarity in regards to the conflict in the middle east,” He added.
BTC/USDT chart for the perpetual contract. Source: Daan Crypto Trades/X
Rekt Capital’s trader and analyst Rekt saw BTC/USD BTC/USD was moving within an open “gap” in CME Group’s Bitcoin futures market — a common short-term price magnet.
“Bitcoin finally Weekly Closed below the top of the red area, confirming that price will be consolidating within the CME Gap until further notice,” He told X-Followers
CME Bitcoin Futures One-Week Chart Source: Rekt Capital/X
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Source: cointelegraph.com
