The warnings say inflation marks just the beginning of a series of key macro decisions that could bring Bitcoin down for months.
Bitcoin (BTC) jumped more than $ 48,000 on December 10 after another fall overnight pushed BTC / USD to $ 47,350.
1-hour candlestick chart BTC / USD (Bitstamp). Source: TradingViewTantrums
Cointelegraph Marketplaces Pro and TradingView data show the pair is worth around $ 48,300 at time of publication as markets adjust for November’s Consumer Price Index (CPI).
Economists expect inflation data for the year this month to be 6.7% higher than in October, Cointelegraph reports.
While shocking CPI news last month sparked a surge in bitcoin and cryptocurrencies, analysts were wary of Friday’s data.
“At the moment, I think the CPI data is a subject of discussion. Markets evaluate it until it reaches extreme values, ”said trader Pentoshi. Discuss on Twitter.
He added that the “real” potential market momentum will come from macroeconomics next week, when the Federal Open Market Committee (FOMC) issues guidance on the outlook for central bank policies and purchasing policies.
Commentators argue that an increase in the rate of decline – a decrease in securities purchases – will put pressure on risky assets, leading to a decrease in Bitcoin’s performance. According to Arthur Hayes, the former CEO of the BitMEX derivatives platform, the situation will only change when the Fed returns to “business as usual.”
“Those deciding whether to allocate more fiat money for cryptocurrency will have to wait. I don’t think it’s possible to make money in your spare time or easier. So if the Fed sits on the sidelines until the dust settles after March 2022 or June 2022, the Fed will raise rates, ”he wrote in his latest post on his website on Thursday.
“Expect risky asset prices to rise as the Fed rises, followed by a rapid resumption of zero interest rates and aggressive bond purchases. … ”
Inflation chart in the USA. Source: Tradingeconomics.com Fundamentals Takes Time
One such prediction refers to existing mid-term forecasts for Bitcoin, which will peak in 2022, rather than this month as previously expected.
“It takes time to reach the bottom. Sorry you have. And we’re getting closer to that with bitcoin, ”he says. advise Followers on Twitter.
“Then we will have another big cycle in 2022. Everything is fine”.
He Add Compared to 2017, five bullish cycles since the last halving, Bitcoin is “probably” at the beginning of a peak, not at the end.
Selected data that showed that price action has copied bitcoin from 2017 almost to date is going to be a tough test this month.