Bitcoin is stuck between the FED and inflation
Last Updated on 12 October 2022 by CryptoTips.eu
Thursday will be just about the most important day of the week for both crypto and stocks. On that day, the Bureau of Labor Statistics will release the most recent US inflation data, and that figure should show whether the Fed’s rate hikes, the Federal Reserve, have been big enough to bring skyrocketing inflation under control.
If not, the Fed may have to announce another rate hike at its next meeting in November, and stocks will likely fall.
No new bottom
However, if it is under control we could see a very nice rally, especially for Bitcoin, which has been refusing to seek new bottoms for a few weeks now.
If you look at the Bitcoin chart of the past month, you clearly spot it. The volatility for which Bitcoin has become so well-known has completely disappeared as of late. Although stock markets keep moving lower, Bitcoin is still neatly ranging. Waiting for a positive sign.
It's interesting that this cycle has been full of double peaks. You saw a double peak on #Bitcoin; it's possible we're seeing something similarly play out in inflation, a double peak where core inflation goes back up to some of these higher levels before ultimately coming down. pic.twitter.com/kGSON2qLzD
— Into The Cryptoverse (@ITC_Crypto) October 10, 2022
On Thursday, the Bureau of Labor Statistics will publish the September consumer price index. Economists expect the overall CPI to show a monthly increase of 0.3% and an annual increase of 8.1%. Investors are watching these updates closely for clues as to the Federal Reserve’s next step in its fight to curb inflation.
James Butterfill, analyst at CoinShares commented:
Several of our clients have made the point that they don’t want to buy bitcoin right now, but as soon as the Fed pivots, they will add to positions.