The Bitcoin Market Faces Pressure from CPI and FTX Liquidation
The Bitcoin (BTC) market could be in for more turbulence if the August Consumer Price Index (CPI) continues to rise and FTX, a collapsed crypto firm, receives approval for liquidation. Market analyst CrypNuevo predicts that the U.S. CPI, set for release on September 13, may increase from 3.2% to approximately 3.6%. This potential surge could trigger fear and uncertainty among investors, leading to selling pressure.
Another factor contributing to the bearish sentiment is the impending liquidation of FTX. The bankrupt crypto platform currently holds approximately $7 billion in physical and digital assets. Additionally, there has been a significant increase in whale transactions involving at least $100,000 worth of BTC, with a rise of 113% in the past two days, reaching a total of 8,321 transactions.
Given the presence of large investors in the market, heightened volatility is expected. As of now, Bitcoin’s price has increased by 0.11% in the past 24 hours, trading at around $25,800, with a 24-hour trading volume surpassing $18 billion.
Hot Take: Bitcoin Market Faces Uncertainty with Growing CPI and FTX Liquidation
As the August Consumer Price Index (CPI) is anticipated to rise and FTX’s imminent liquidation looms, the Bitcoin market is under pressure. If the U.S. CPI reaches 3.6%, up from the current 3.2%, investor confidence may waver, leading to a potential increase in selling activity. Additionally, FTX’s bankruptcy and its $7 billion worth of assets further contribute to the bearish sentiment.
The surge in whale transactions, involving substantial BTC amounts of at least $100,000, has also stirred concerns. With a staggering 113% increase in the past two days, reaching 8,321 transactions, the market is anticipated to face heightened volatility.
Despite this uncertainty, Bitcoin has experienced a meager 0.11% price increase in the past 24 hours, currently trading at approximately $25,800. It is crucial for investors to closely monitor market developments and navigate the potential challenges ahead.
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