Bitcoin & Co: Crypto investors tremble before US inflation data

After Bitcoin slipped back below the important $20,000 mark on Tuesday, the low continued to fall to $19,292 on Wednesday night. Although he has been able to limit the losses somewhat since then, new US economic data could cause further turbulence during the course of the day.

When the consumer price data for June is published in the USA at around 2.30 p.m. German time today, experts are not yet expecting the hoped-for signs of relaxation, but rather a renewed increase of 8.8 percent. Should the actual value turn out to be even higher, the pressure on the US Federal Reserve will continue to increase. This would mean further headwinds, especially for risky assets – which include cryptocurrencies in addition to equities.

In the run-up to the inflation figures, US investors already fled to safety again on Tuesday. On Wall Street, the leading US indices ended trading with losses, while significant losses were also recorded on the crypto market. Bitcoin fell well below the 20,000 mark again.

Although the price may initially stabilize in the area of ​​$19,500 in the morning, crypto investors should be prepared for increased volatility as the day progresses. If inflation continues to rise, the Fed is likely to tighten the monetary policy reins even more shortly, which could result in a further appreciation of the dollar, among other things.

Conversely, falling inflation could cause a small countermovement. A rise in inflation of less than 8.5 percent could lead to a scenario in which the dollar weakens and “crypto rises 5 percent,” broker Pepperstone Group’s Chris Weston told reporters Bloomberg.

Bitcoin
(ISIN: CRYPT0000BTC)

At least in the short and medium term, bitcoin remains heavily influenced by macro factors such as fears of inflation and recession and the strong dollar. Investors who are active in this market environment therefore still need strong nerves and should act for as long as possible and with limited capital investment.

Notice of Conflicts of Interest:

The CEO and majority owner of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has taken direct and indirect positions on the following financial instruments mentioned in the publication or related derivatives that may benefit from any price development resulting from the publication: Bitcoin.

The editor-in-chief of the publisher Börsenmedien AG, Mr. Leon Müller, has taken direct and indirect positions on the following financial instruments mentioned in the publication or related derivatives that can benefit from any price development resulting from the publication: Bitcoin.

The author holds direct positions on the following financial instruments mentioned in the publication or related derivatives that can benefit from any price development resulting from the publication: Bitcoin.

Shares or derivatives discussed / mentioned in this article are located in the “AKTIONÄR Depot” of DER AKTIONÄR.

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