Will Bitcoin and the Crypto Market Rise Further with Potentially Good CPI Figures?
Analysts predict that the Core CPI, a key inflation indicator that includes food and energy, might only increase by 0.2% month on month for August. If inflation data reflects these expectations, the Federal Reserve is likely to maintain interest rates at its next policy-making committee meeting. This would be welcomed by the crypto market, which is considered a risk-asset market.
Bitcoin Consolidates its Move Upwards
Cryptocurrencies are generally on the rise, with Bitcoin consolidating its move upwards and crossing the $26,000 mark once again. Bitcoin has been facing resistance at $26,150 since August 23 and needs to turn this into support to regain its upward momentum.
Bright Spots and Future Outlook
Bullish divergence has formed for the BTCUSD pairing on the daily time frame, indicating a potential upward trend. Although a death cross is also present on the daily, history shows that multiple death crosses can occur before a bull run begins. If inflation figures stabilize, markets may price at least one year into the future, leading to increased liquidity and potential positive developments such as the granting of Bitcoin Spot ETFs by the SEC.
Hot Take: Bitcoin’s Potential Amidst CPI Figures and Market Conditions
As potentially good CPI figures are anticipated, Bitcoin and the crypto market might experience further growth. Maintaining lower interest rates would be favorable for the crypto market, which is seen as a risk-asset market. Bitcoin’s upward consolidation and the formation of bullish divergence indicate the possibility of an upward trend. Looking ahead, if inflation stabilizes and liquidity increases, Bitcoin could thrive. This could be a promising time for investors to consider Bitcoin, while critics would seize the opportunity to say “I told you so” if Bitcoin experiences a significant decline.
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