Will Bitcoin And Crypto Market Be Bullish After The April CPI Data Adjustment?
Key Points:
- Bitcoin has seen increased buying since the beginning of March, with the price rising from around $20,000 on March 11 to $28,300 at press time. The CPI (Consumer Price Index) data for March, which is scheduled for April 12, could, however, add some new volatility to the crypto market.
- The CPI (Consumer Price Index) data for March, which is due on April 12, could add to the market’s volatility. Following the trend, if the US dollar loses control, we may see a short-term drop in BTC price due to the decreasing correlation.
CPI Data may affect bitcoin price and the whole crypto market after the next adjustment in April 2023
The minutes of the most recent FOMC (Federal Open Market Committee) meeting will be released by the US Federal Reserve (Fed) in the near future. While markets such as the cryptocurrency market would like to see inflation fall faster, their perspective appears to differ from that of the Fed. Market sentiment suggests that rate hikes will be temporary, but the Fed remains combative.
According to CME Group’s FedWatch tool, the Fed is likely to raise interest rates by 0.25% again. Furthermore, the upcoming CPI data, according to analyst James Choi, will send the dollar’s strength into a three-month free fall. “No one seems to know how the $USD $DXY will fall in the next three months,” Choi said.
So, what can Bitcoin achieve in the face of potential volatility following the release of April CPI data? Most traders profit from volatility in a volatile market like the bitcoin market, and the upcoming CPI data appears to indicate a lot of volatility. When it comes to volatility, Bitcoin, according to Kaiko, is very different from stocks.
Due to the US banking crisis, the difference between Nasdaq and Bitcoin’s 30-day rotational volatility reached a one-year high. Last week, Kaiko reported that the correlation between Bitcoin and Gold has surpassed the correlation between Bitcoin and the S&P 500. According to Kaiko, the inverse correlation between BTC and the US dollar is also rapidly dissipating.
Following the trend, if the US dollar loses control, we may see a short-term drop in BTC price due to the decreasing correlation. The current resistance level for BTC is $28,733, with support at $27,794.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Chubbi
Coincu News
Author
Uncategorized
Will Bitcoin And Crypto Market Be Bullish After The April CPI Data Adjustment?
Key Points:
- Bitcoin has seen increased buying since the beginning of March, with the price rising from around $20,000 on March 11 to $28,300 at press time. The CPI (Consumer Price Index) data for March, which is scheduled for April 12, could, however, add some new volatility to the crypto market.
- The CPI (Consumer Price Index) data for March, which is due on April 12, could add to the market’s volatility. Following the trend, if the US dollar loses control, we may see a short-term drop in BTC price due to the decreasing correlation.
CPI Data may affect bitcoin price and the whole crypto market after the next adjustment in April 2023
The minutes of the most recent FOMC (Federal Open Market Committee) meeting will be released by the US Federal Reserve (Fed) in the near future. While markets such as the cryptocurrency market would like to see inflation fall faster, their perspective appears to differ from that of the Fed. Market sentiment suggests that rate hikes will be temporary, but the Fed remains combative.
According to CME Group’s FedWatch tool, the Fed is likely to raise interest rates by 0.25% again. Furthermore, the upcoming CPI data, according to analyst James Choi, will send the dollar’s strength into a three-month free fall. “No one seems to know how the $USD $DXY will fall in the next three months,” Choi said.
So, what can Bitcoin achieve in the face of potential volatility following the release of April CPI data? Most traders profit from volatility in a volatile market like the bitcoin market, and the upcoming CPI data appears to indicate a lot of volatility. When it comes to volatility, Bitcoin, according to Kaiko, is very different from stocks.
Due to the US banking crisis, the difference between Nasdaq and Bitcoin’s 30-day rotational volatility reached a one-year high. Last week, Kaiko reported that the correlation between Bitcoin and Gold has surpassed the correlation between Bitcoin and the S&P 500. According to Kaiko, the inverse correlation between BTC and the US dollar is also rapidly dissipating.
Following the trend, if the US dollar loses control, we may see a short-term drop in BTC price due to the decreasing correlation. The current resistance level for BTC is $28,733, with support at $27,794.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Chubbi
Coincu News
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