Bitcoin (BTC) rose on September 18 as the focus shifted to the Open Market Committee (FOMC) monetary policy meeting last Tuesday amid falling inflation.
The BTC / USD rate hit $ 49,000 on the Coinbase exchange and hit $ 48,825 before falling due to temporary profit-taking. However, the upside move suggests the pair will hit $ 50,000 in the upcoming sessions, a psychological resistance target.
#bitcoin You need to get over $ 50,000 and keep it simple.
– David Gokhshtein (@davidgokhshtein) September 18, 2021
Fears of inflation are driving the demand for Bitcoin
In spite of the on 13.
The data shows that the US CPI was up 5.3% yoy in August, compared to 5.4% in the previous month. The market received mixed reactions to these numbers, with a few joyful that core inflation was lower than expected while other factors Point to Inflation remains strangely high – at 5.3%, it is one of the highest levels for the CPI in more than a decade.
“I prefer to see inflation data in the middle sense (instead of just having one crazy category that drives everything, let’s look at the center of the distribution, above 82,” said Jens Nordvig, data founder. Category, equally weighted) “. Analysis company Exante Data. He added:
“Above [median] Metric system, [inflation] Number is not low. “
JUST IN – NY Federal Reserve inflation now at 5.2% in one year, 4% in three years; high, with “large expected increases” in food, rent and medical expenses.
– Disclose.tv (@disclosetv) September 13, 2021
More bullish signals for Bitcoin come as analysts at TD Securities suggest the Federal Reserve may delay its plan to cut its $ 120 billion monthly asset buying policy after the report, with inflation weaker than expected.
In addition, Anthony “Pomp” Pompliano, partner at Pomp Investments, warns that sustained inflation of 5% will cause Americans to see their savings fizzle out.
“The only way to protect yourself in this environment is to make sure you’re invested,” Pomp said in a statement to clients.
“The more you invest in markets, whether it’s stocks, real estate, crypto, etc., the more profitable you become.”
Dollar rises at the same time
In fact, on the day the inflation data was released, the BTC / USD rate rose 4.85%.
The pair gained 2.17% on Wednesday, closing above $ 48,000. Price began to consolidate sideways for the next two sessions, only to continue moving towards $ 49,000 on Saturday.
Surprisingly, the US Dollar Index (DXY) also rose, as did Bitcoin, suggesting that macro investors were shifting capital into assets they considered their safe haven after the inflation report. The index, which measures the dollar against a basket of top foreign currencies, rose 0.41% on Friday to 93.246, its highest level in September.
Further signals for the Bitcoin and Dollar markets are expected from next week’s FOMC meeting.
Related: Bitcoin battling $ 40,000 after Jerome Powell’s “most confusing” press conference
Fed officials agreed that they would begin easing their monetary policy later this year. But the Nonfarm Payrolls Report (NFP) earlier this month showed that the US labor market has not fully recovered.
This should cause the Fed to put its tapering plans on hold, and any further delay could result in both Bitcoin strength and dollar weakness.