Home Analysis Bitcoin halts four day slide as CPI comes in better than expected

Bitcoin halts four day slide as CPI comes in better than expected

0 comment

Spurred by better-than-expected US Consumer Price Index (CPI) data, Bitcoin rose 1.6% in the 30-minute bar at 13:30 (BST) to close at $28,197.

The move was accompanied by massive volume that broke the four-day selloff of major cryptocurrencies.

Bitcoin 30 minute chart
sauce: BTCUSD on TradingView.com

Bitcoin uncertainty weighs on broader macro factors

After breaking below $30,000 on April 17, BTC found support at $27,000 on April 24.

It has since traded between $27,280 and $30,050, with both limits showing strong support and resistance as indicated by multiple touches in the respective bands.

Rejected at resistance at $29,940 on May 6, BTC closed the daily red candlestick for four days in a row, losing 8% during this period.

The current macroeconomic narrative focuses on the $31 trillion debt ceiling and whether the US will default if the bipartisan deal cannot be scrapped.

Secretary of the Treasury Janet Yellen Without a deal, the administration warned it would run out of money by June 1.

Meanwhile, the Fed’s rate hike program seems to have had the desired effect, at least month-on-month, contrary to expectations.

On May 3, the central bank raised interest rates as follows: 25 basis points, the federal funds interest rate will be 5.00% to 5.25%. The next FOMC meeting will be June 14ththere is currently a market for 87% Supporting no rate hikes, perhaps in recognition of the weaknesses in the banking industry seen in recent weeks.

CPI data

CPI rose 4.9% in April, below expectations of 5%.

Nonetheless, core CPI rose 0.4% In April, the growth rate was higher than expected, which was 0.4%. This brings core CPI year-over-year to 5.5%, unchanged from last April.

Like the CPI, the Core CPI tracks the prices of goods and services, except that it excludes food and energy prices, which are said to be too volatile to be included. Central banks use core CPI rather than CPI to inform policy.

Bitcoin, on the other hand, has been strong throughout this period of uncertainty, even briefly showing signs of safe-haven properties during the banking crisis.

For now, all eyes will be on June 14 as markets await the Fed’s assessment, but many markets are waiting for a pause that could lead to a turnaround.

Posted in United States, Analysis
index (2)

About Us

Coingeography is a principal independent digital media resource with a coverage of comprehensive news on Crypto assets, NFT, Metaverse and the surging Web 3 space. We here deliver the most authentic and precise news from the arena of the Web 3 space and crypto assets. 

Feature Posts

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

Copyright ©️ All rights reserved. | CoinGeography – Powered by Corum8