Global financial markets once again find themselves trending lower on June 10 after the Consumer Price Index (CPI) came in at a blistering 8.6% year-over-year increase, the highest print since 1981.
The hotter-than-expected CPI print resulted in a collapse of the $30,000 support and Bitcoin (BTC) price sold off to a daily low of $28,852 before dip buyers managed to bid the price back above $29,000.
Here’s what several analysts in the market are saying about the outlook for Bitcoin moving forward since there appears to be little relief on the inflation front and the Federal Reserve is still determined to raise interest rates.
The effect of the high CPI print on two benchmarks of financial markets, the dollar index (DXY) and the S&P 500 (SPX), was touched on by il Capo of Crypto, who posted the following charts noting that “After CPI results, #DXY continues its pump and #SPX keeps free-falling.”
Market analyst Kevin Svenson also said that the Fed's inability to curb inflation is likely to translate to choppy price action for the next year.
With inflation, at 8.6% that means increased rate hikes are likely. $DXY is going parabolic. #BTC and most asset classes are likely going to have to deal with lots of ranging at the lows. Sideways for a year possibly.
— Kevin Svenson (@KevinSvenson_) June 10, 2022
Instant recovery is not likely.
Should the price of BTC continue to trend lower, crypto trader and pseudonymous Twitter user Altcoin Sherpa says trading below $28,000 is possible.
Altcoin Sherpa said,
“$BTC: EMAs look the best they've looked in a while on the 4h but the overall high time frame market structure remains bearish. Not really doing anything active rn, just observing. Seems clear that $28K> is next up if this current area gets lost.
Related: Bitcoin price falls under $29.5K after 'unexpected' 40-year high US inflation
Insight into what it would take to avoid a pullback to the support at $28,000 was provided by market analyst and pseudonymous Twitter user CrediBULL Crypto, who posted the following chart showing the “unfortunate” retrace from $30,000, the area. The analyst suggested that this “was the moment where we needed to see follow through.”
CrediBULL Crypto said,
“On support, but it's been tested four times now, so more likely it gives way to $28K. IF we can get back above $30K, then $28K may be avoided.”
The overall cryptocurrency market cap now stands at $1.192 trillion and Bitcoin’s dominance rate is 46.6%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Estonia's Circuit Court recently reversed the extradition decision involving Ivan Turogin and Sergei Potapenko, accused in a significant cryptocurrency fraud and money laundering case heading to the United States. The Tallinn Circuit Court annulled the extradition ruling, citing the Estonian government's failure to investigate key circumstances and overlook the US detention facility's condition.
JoyThere are currently around 21 victims and counting
AlexA recent study by CoinGecko has shed light on the harsh reality facing Web3 games, revealing that a substantial 70% of games launched in 2023 have faced failure.
AaronThe recent decision by Sony to remove TV shows from the PlayStation Store has sparked discussions about the nature of ownership in the digital era. Unlike physical media, digital content faces uncertainties due to licensing agreements and availability constraints. Users investing in digital libraries are now confronted with the sudden disappearance of purchased content, raising pertinent questions about ownership rights.
Joya French court has cleared the individuals responsible for the $8.5 million hack of Platypus Finance in February 2023. The court acquitted Mohammed M., 22, who orchestrated the sophisticated flash loan attack on the Automated Market Maker (AMM) protocol based on the Avalanche network
AaronThe EMI license empowers Crypto.com to introduce a range of UK-centric e-money offerings within the FCA's framework.
BrianSpanish founder, Cao de Benos, faces extradition for his alleged involvement in a crypto scheme aiding North Korea.
Hui XinAlejandro Cao de Benos, a flamboyant Spanish aristocrat and founder of the pro-North Korea group Korea Friendship Association (KFA), was arrested in Madrid last week on U.S. charges related to cryptocurrency technology. Despite his release a day later, the saga highlights the complex web of international sanctions, political agendas, and alleged illicit activities surrounding North Korea.
JoyThis surge stands as the most significant since October 2021, coinciding with the introduction of the futures-based ETF in the US.
BrianSouth Korea strengthens crypto oversight with DAXA and FIU, focusing on compliance and transparency.
Hui Xin