Bitcoin price settled into a holding pattern on Wednesday
On Wednesday, the price of bitcoin stabilised before US inflation data which can cause further turmoil. The largest cryptocurrency was trading at around $19,500 in Asian trade, hardly changed from the previous day but suffering from a decline of 11% from last week’s conclusion. In the lead-up to the release of the inflation statistics, investors took a collective deep breath, which also soothed global markets.
A result that surpasses forecasts of 8.8 percent may increase wagers on the Federal Reserve tightening up the money supply, igniting speculative assets like cryptocurrency once again. However, a worse rating might energise the market’s outlook.
According to Chris Weston, head of research at Pepperstone Group, headline inflation below 8.5 percent might result in a situation where the dollar “downs globally” and “crypto goes up 5 percent Plus.”
Fed rate increases, the collapse of the Terra ecosystem, and the demise of the cryptocurrency hedge firm Three Arrows Capital are all to blame for the 58 percent decline in Bitcoin in 2022. According to CoinGecko, the total value of the cryptocurrency market was $906 billion on Wednesday, down from more than $3 trillion in November.
According to co-founder of Fairlead Strategies and technical analyst Katie Stockton, “from a long-term viewpoint, negative momentum is growing,” and “Bitcoin may test the $18,300 to $19,500 price level,” earlier this week.