Bitcoin Loses $20,000 Grip, Extends Consolidation For 2nd Straight Day

As a result of last week’s remarkable surge, Bitcoin is now seeing one of its largest drops in recent months. After starting the week at $18,742, the coin’s price jumped to a staggering $22,537 on September 14, a gain of 15% over its September 7 low. Since the market bottomed in June, this rally has been its strongest. Bitcoin’s steep 14 percent correction during the crash almost entirely nullified this gain. Bitcoin’s value dropped from $22,536 to $19,735 in the space of just two days. Bitcoin’s link to the S&P 500 Index is blamed for the recent decline in its value. The Consumer Price Index report had been released by the US government a few days ago. The data indicated that year-over-year inflation increased from 8.1% to 8.3%. The global financial markets were rocked by this report. Related Reading: Bitcoin Price Has Strong Potential To Hit $25,000, Weekly Analysis Suggests Bitcoin Shaken By CPI Data After the report was released, the stock and cryptocurrency markets both felt the pain. The overall financial market followed the S&P 500’s lead and dropped 200 points. After a drop in the index, crypto markets went into a tailspin as well. Similar to the drop of 2972 points in the index, the price of bitcoin fell. A sell-off in the cryptocurrency market was caused by this crash. The decline is the result of more than just this report, though. The US Federal Reserve is considering boosting interest rates by 1 percentage point due to higher-than-expected inflation causing concerns for the start of a recession. The Fed’s contemplation instills panic in the market, causing further declines in the value of both equities and cryptocurrencies. As of this writing, Bitcoin has surpassed the 78.60 Fib level. This downward trend has placed Bitcoin in a perilous situation. BTC Bulls Must Reclaim $20K Turf Losing the $20,000 psychological support can cause the price to collapse to levels prior to the September 9 surge. And access to real-time data makes this feasible. The current reading of the fear and greed index is 19, indicating extremely fearful market sentiment. Bulls must recover to the 78.60 Fib level if Bitcoin is to survive market worries. This prior support level can serve as the market’s catalyst for recovery. If the bears prevail over the bulls, the price might fall to roughly $18,000 on September 7. Depending on current market conditions, this may not be true. As the S&P 500 continues to lose ground, Bitcoin may follow suit. The correlation coefficient of 0.69 indicates that there is still a correlation between the two markets. The correlation coefficient fluctuates between 0.93 and 0.65 as a result of the historical market activity. If the crypto industry as a whole is to revive, market conditions must improve and bulls must strive for a sustained recovery. Related Reading: Why Celsius Investors Don’t Seem Upbeat Despite CEL Rallying 30% BTC total market cap at $384 billion on the daily chart | Source: TradingView.com Featured image Pixabay, Chart: TradingView.com (The analysis above represents the author's personal views and should not be construed as investment advice.)

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Here’s Why $80 Billion Was Wiped Off The Crypto Market

Over the last 24 hours, a substantial amount has been wiped off the crypto market. Billions of dollars were taken off the market cap as cryptocurrencies such as bitcoin lost about 10% of their value in the same time period. Following this, Charles Hoskinson, founder of the Cardano network, has shared his thoughts on what caused the market to crash. Inflation Is The Culprit Taking to Twitter, Cardano founder Charles Hoskinson explained that the high inflation rate was the reason behind the market crash. It is no secret that the inflation rate of the United States has been climbing in the last couple of months, and the most recent CPI data report saw another increase in inflation, triggering panic across the financial markets. Related Reading: Investor Sentiment Sees Sharp Positive Spike Following Crypto Market Recovery On the headline inflation, there was only about a 0.1% increase according to the CPI data, while core inflation rose 0.6%. However, despite these numbers not being ‘large’ compared to previous inflation growth rates, it showed that inflation was not slowing down. With the year-over-year inflation rate now sitting at 8.3%, it triggered a massive sell-off in the market.  Hoskison shared a report from CNBC that showed that the crypto market was not the only one hit in the sell-offs that accompanied the release of the CPI data. The DOW had fallen 1,200 points in a single day, which was the largest single-day drop recorded in the last two years. Market cap drops to $951 billion | Source: Crypto Total Market Cap on TradingView.com Hoskinson’s statements on the topic of inflation were, “I remember attending a dinner party in Abu Dhabi and sitting next to a famous economist who told me inflation had nothing to do with printing massive sums of money. The people in charge are a delusional cult. You get the bill.” Related Reading: Bitcoin Must Hold This Level Or Risk Falling To $10,000 The crypto market has lost a total of $80 billion in the last 24 hours, which has brought the total market cap below $1 trillion once more. Now, the market looks toward the FOMC meeting that is planned to happen at the start of next week. The decision will also have a significant impact on the market. But before then, the Ethereum Merge presents another event that could have an impact on the market. Bitcoin’s strong correlation with the stock market is also having an impact on the market. This means that for there to be a recovery in the crypto market, a recovery in the stock market would help it along. However, with the inflation rates remaining so high, recovery may remain far off until there is more positive news. Featured image from Forkast, chart from TradingView.com Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…

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US Trade War Rattles Crypto Market : Inflation Fuels Bitcoin Surge

The US trade war initiated by the U.S under President Trump has caused notable volatility in the cryptocurrency market. Bitcoins price dropped to $91,200 following the announcement of new tariffs but quickly rebounded. Despite short-term turbulence, analysts predict that the ongoing tariff dispute could drive long-term adoption of digital assets as a hedge against rising […]

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Dogecoin Leads Market Decline with 4% Slamp: Bitcoin Traders Await CPI Data

Crypto markets experienced a 3% drop in the past 24 hours, with Dogecoin taking the largest hit. As traders await the U.S. CPI data, the outcome could influence future market shifts and dollar positioning, sparking potential rallies. Dogecoin Leads Market Decline Ahead of CPI Dogecoin (DOGE) led the market decline as Bitcoin traders closely monitored […]

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Bitcoin Falls Back To $24,000 After Briefly Topping $26K – Will BTC Backpedal Further?

Bitcoin price declined on Tuesday afternoon, reversing the day’s early gains, as the broader crypto market reacted to the latest financial sector crisis and inflation data headlines. Bitcoin (BTC) was trading at $24,833 at the time of writing, down 8% from its intraday high of $26,502 on Tuesday morning, its highest level in nine months, [...]

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US Annual CPI Drops Below Expectations To 4%! Bitcoin Breaks Above $26.5K

The post US Annual CPI Drops Below Expectations To 4%! Bitcoin Breaks Above $26.5K appeared first on Coinpedia Fintech News

In a surprising turn of events, the US Annual Consumer Price Index (CPI) has dropped below expectations to 4%, a development that has fuelled Bitcoin’s impressive surge above the $26.5K mark. The US Bureau of Labor Statistics (BLS) announced on Tuesday that the annual inflation rate, gauged by the Consumer Price Index (CPI), experienced a …

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Bitcoin Confuses Investors With Consolidation Below $31K! Will CPI Data Bring Breakthrough Moment For BTC Price?

The post Bitcoin Confuses Investors With Consolidation Below $31K! Will CPI Data Bring Breakthrough Moment For BTC Price? appeared first on Coinpedia Fintech News

Bitcoin's consolidation under $31K and unexpected CPI data have investors speculating about a potential price shift

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US CPI Data Shows A Slowdown In Inflation! Here’s How The Crypto Market Is Going To React

The post US CPI Data Shows A Slowdown In Inflation! Here’s How The Crypto Market Is Going To React appeared first on Coinpedia Fintech News

In recent days, anticipation has been building in the crypto market as investors eagerly awaited the release of crucial Consumer Price Index (CPI) data to determine the future trajectory of major cryptocurrency valuations. That suspense has now come to an end, as the Bureau of Labor Statistics unveiled the March CPI figures today, sparking a …

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Analyst Warns Of 10% Bitcoin Price Drop Ahead Of CPI Data

Recently, there have been significant fluctuations in the prices of Bitcoin; presently, they oscillate between $87,000-$87,500. This may not be eye candy to investors who are currently on the sidelines waiting for the coin to hit $90k, particularly the release of CPI data set today, November 13. This news is perceived by analysts to have a considerable influence on market sentiment and the expected direction of the alpha crypto asset. Related Reading: XRP Price Patterns And 2024 Election Spark Talk Of A New Rally The Barometer For Inflation Reflecting changes in the prices consumers pay for goods and services, the CPI report is a main indication of inflation. Expectations about the CPI can cause more volatility in the bitcoin markets as inflation rates affect the Federal Reserve’s choices on monetary policy. Recent trends imply that should inflation remain lowered, the Federal Reserve might cut interest rateshistorically this has had a positive effect on Bitcoin prices. Reduced borrowing rates sometimes inspire investment in risky assets such as cryptocurrencies, hence increasing demand for Bitcoin. #Bitcoin is up to $90,000 and I think we’re about to get started with the markets. The sweet spot is having a 10% correction towards the CME gap before we continue. I’m slightly bearish going into CPI tomorrow. pic.twitter.com/dfpUc2df1k Michaël van de Poppe (@CryptoMichNL) November 12, 2024 Growing Investor Trust Famous crypto expert Michaël van de Poppe, the founder of MNConsultancy, said that the current state of affairs in the crypto market corresponds well to the positive assessment of Bitcoin. In case CPI statistics would indicate more cases of inflation drops, he says that this would lead to growing investor trust and higher capital inflows into Bitcoin and other cryptocurrencies. Will Bitcoin Retrace? He also cautions, though, that unanticipated inflation rises could surprise markets and cause pricing adjustments all around. He anticipates a 10% Bitcoin retracement prior to the release of CPI data, targeting a range of $75,660 to $81,193. Market Reactions And Predictions As traders get ready for the CPI figures, the general market mood remains mixed. Some experts think that positive CPI numbers could lead to a rise in Bitcoin prices, but others say that people shouldn’t get too excited. Meanwhile, many investors are still optimistic about the long-run prospects of Bitcoin. The incoming administration of newly-elected US President Donald Trump adds another layer of complexity to market dynamics. Related Reading: Shiba Inu Strategic US Hub Plan Sends SHIB Price On A 23% Moonshot According to Van de Poppe, short-term regulatory actions will benefit Bitcoin, but their long-run consequences might be something more complex if control for inflation is not handled well. Meanwhile, as Bitcoin continues in its path for a major price discovery, the focus will be on the CPI data and the impact they have on digital assets. Such an unpredictable environment should be approached with caution by investors while they remain focused on economic events that could swing their investments. At the time of writing, Bitcoin was trading at $87,509, up 2.1% and 17.2% in the daily and weekly timeframes, data from Coingecko shows. Featured image from The VR Soldier, chart from TradingView

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Will Crypto Prices Pump If US CPI Data This Week Shows Inflation Declining? – Trader Predictions

Expectations are that Wednesday’s CPI data in the US will show a fall in inflation, which some traders expect may benefit risk-on assets like cryptocurrency. [...]

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Bitcoin ETFs Attract $755M Inflows As BTC Price Surpasses $100K

Bitcoin ETFs gain $755M as CPI data triggers a market surge, pushing BTC above $100K briefly amid robust trading volumes.

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