Bitcoin (BTC) fell to a two-week low on June 11 as Wall Street’s weekly trading ended under bear control.
US inflation data proves failure
Data from Cryptooshala Markets Pro and trade view followed BTC/USD as it hit $28,528 on Bitstamp, its lowest level since May 28th.
The pair fell in line with stock markets on June 10, which ended the week with a notable drop, with the S&P 500 and Nasdaq Composite shedding 2.9% and 3.5%, respectively.
This happened against the backdrop of unexpectedly high inflation data in the US, which turned out to be the worst, which contrasted sharply with expectations. As reported by Cryptooshala, annual inflation at 8.6% was the highest since December 1981.
Reacting, market commentators were firmly on the bearish side when it came to the future movement of the BTC price.
“When we drop to $22,000-$24,000 in bitcoin, they will call for a decline. Don’t be too greedy when the time is right.” – Popular Twitter account Crypto Tony. said followers.
Filbfilb, co-founder of the Decentrader trading package, meanwhile opposed current environment with the collapse of COVID-19 in March 2020. He argued that this year’s slow loss was more painful than the “car crash” crashes of the time that Bitcoin briefly rose to $3,600.
“Inflation hasn’t peaked yet and neither has Bitcoin,” MicroStrategy CEO Michael Saylor said in a more hopeful angle after the data is printed.
“In the current macro environment, it doesn’t matter how many charts show a merger, we’re hitting historic oversold levels,” PlanC’s popular Twitter account. opposed.
“As long as Bitcoin remains correlated with asset risk, I don’t see a significant trend reversal anytime soon.”
In the meantime, if it ends the week at current levels or below $29,450, BTC/USD will threaten the lowest weekly close since December 2020.
Doubt about rate hikes
Looking ahead, the upcoming decisions to raise interest rates in response to inflation should have been the focus of the coming week.
BTC price records the longest losing streak in history – 5 things to know about bitcoin this week
The Fed’s Open Market Minutes (FOMC), due June 14-15, will give an indication of how aggressive policymakers plan to be when it comes to curbing prices.
“I think at some point the market will realize that inflation isn’t going away anytime soon and that rates will still be relatively low,” Daan Crypto Trades Twitter account. argued.
He added that gold could provide an early indication of this “new old” trend, up from its current trading channel.
“$GOLD could be a leading factor in such a shift. Watching this carefully. Right now, we are still in the process of baking bad factors,” reads the message of the day.
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Credit : cointelegraph.com