GET 10% OFF ON YOUR FIRST ORDER. FOR A LIMITED TIME ONLY. Use code: WELCOME on checkout
News

Inflation Tango: Bitcoin’s Bullish Dance with US CPI Data

Bitcoin’s price has been sensitive to changes in inflation data – Consumer Price Index (CPI) – relative to the previous month, according to a May 29 market report from 10x Research analyst Markus Thielen.

He said that higher-than-expected CPI has been bearish for the cryptocurrency, while lower-than-expected CPI has been bullish.

Correlations With CPI Data

Additionally, spot Bitcoin ETF inflows closely followed CPI data releases, as they resumed or accelerated when CPI data showed lower inflation compared to the previous month.

The analysis plotted BTC price over the past six months against U.S. inflation data released, noting that when CPI was higher, the asset was bearish, and when the figure was lower than expected, it was bullish.

“Traders who know how Bitcoin reacts to CPI should have confidence in trading in the opposite direction of the CPI change relative to the previous month.”

Bitcoin changes direction based on CPI higher/lower than the previous month – 10x Research.

The research predicts that Bitcoin ETF inflows will likely remain strong over the next two weeks leading up to the June 12 CPI data release, potentially pushing BTC to new all-time highs.

The pricing model projected a small decline when consensus expected another higher disappointing inflation print for May 15. Looking forward to the next two months, it predicts that inflation may hover around a similar level, “with a downward bias soon occurring.”

“If inflation prints 3.3% or lower, bitcoin should make a new all-time high.”

The analysis suggests that inflation is no longer a concern and will likely turn into a tailwind for Bitcoin as the summer progresses. U.S. inflation based on CPI data was 3.4% for April.

Additionally, core personal consumption expenditures (PCE) price index data, which is also the Federal Reserve’s preferred measure of inflation, is due on Friday, May 31.

BTC Price Outlook

Bitcoin is currently trading down 1% on the day at around $68,000. It dropped to an intraday low of $67,122 but managed to recover during the Thursday morning Asian trading session.

BTC has been relatively flat for the past fortnight and is down 7.7% from its mid-March all-time high as the consolidation continues.

The majority of the altcoins are seeing larger losses today, with markets retreating 1.3% to $2.68 total capitalization.

The post Inflation Tango: Bitcoin’s Bullish Dance with US CPI Data appeared first on CryptoPotato.

Latest Press

post-thumbnail
News
1 hour ago
Thailand in Talks with Ripple for Potential XRP Integration
Ripple acknowledges Thailand’s potential adoption of XRP in a letter to Thai authorities. Ripple p...
READ MORE
default post thumbnail
News
1 hour ago
XRP Bears In Control: Understanding the Sustained Bearish Sentiment
XRP price struggled to recover above the $0.4880 resistance zone. The price is moving lower and the ...
READ MORE
default post thumbnail
News
1 hour ago
Ethereum Price Trims Gains as Bitcoin Slump Drags Crypto Market
Ethereum price struggled to climb above the $3,550 resistance and trimmed gains. ETH gained bearish ...
READ MORE
default post thumbnail
News
1 hour ago
LBank Exchange Will List DED (DED) on June 24, 2024
Road Town, BVI, June 24th, 2024, Chainwire In a significant move for cryptocurrency and mobile techn...
READ MORE
default post thumbnail
News
1 hour ago
Bitcoin Price Takes a Plunge: Analyzing the Sudden Drop
Bitcoin price started another decline after it struggled near $64,550. BTC declined below the $63,50...
READ MORE
default post thumbnail
News
1 hour ago
Top Analysts Predict When Altcoin Season Will Begin
Crypto enthusiasts and investors are eager to know when altcoin season will kick off. Top analysts o...
READ MORE
default post thumbnail
News
1 hour ago
Crypto on the Campaign Trail: Bitcoin and Blockchain Shapes the 2024 Presidential Race
As the 2024 US presidential election draws near, cryptocurrency has emerged as a surprising yet powe...
READ MORE
default post thumbnail
News
1 hour ago
Miners’ $2 Billion Sell-off Impacts Bitcoin Price, May Cause Second Negative Monthly Close
Bitcoin’s (BTC) price had rallied above $70,000 early this month amid a 19 consecutive inflow stre...
READ MORE
default post thumbnail
News
1 hour ago
Bitcoin Risk at Lowest Level Ever: Here’s Why
Once viewed as a speculative experiment, Bitcoin has matured into a secure and trusted digital asset...
READ MORE
post-thumbnail
News
1 hour ago
Dell Technologies CEO’s Bitcoin Tweets Ignite Crypto Community Speculation
Dell Technologies CEO Michael Dell has sparked a flurry of discussion and speculation within the cry...
READ MORE

Publish an article now

Unlock the power of media for instant visibility to the target audience, major SEO boost, greater website traffic and conversion rates.

click here to get started