Bitcoin Holds Steady at $26,800 Amid Surprising U.S. Inflation Data
Summary:
Despite higher-than-expected U.S inflation data, Bitcoin's price holds steady at the critical $26,800 mark. The recently unveiled persistent inflation surprises financial markets, especially with September's Consumer Price Index coming in at 3.7% year-on-year. As per the data, future cuts to interest rates by the Federal Reserve seem unlikely. Despite the uncertainty, Bitcoin is yet to see substantial volatility due to these macroeconomic factors.
Bitcoin remains steadfast around the crucial $26,800 price point as the U.S. financial market braced itself for the Oct. 12 trading session amidst higher-than-anticipated inflation rates. Bitcoin's price has somewhat remained stable following the two-week low experienced the previous day triggered by U.S. macroeconomic data reports showing ongoing inflation, which was higher than expected by the market. The trend was further strengthened with the September Consumer Price Index (CPI) record coming in at 3.7% annually, slightly above the 3.6% prediction. When food and energy were excluded, the figure was 4.1%, consistent with forecasts.
According to the U.S. Bureau of Labor Statistics, the report confirmed that the all-items index saw a 3.7% rise for the year ending in September, mirroring the increase for the year-ending in August. The all-items less food and energy index saw a rise of 4.1% in the past 12 months, while over the last year, the food index rose by 3.7% and the energy index declined by 0.5%.
In response to the data, The Kobeissi Letter emphasized the current predicaments faced by monetary policies and the Federal Reserve. Furthermore, with CPI inflation going beyond expectations where Personal Consumption Expenditures (PCE), and Producer Price Index (PPI) inflation are on the rise, it questioned the possibility of the Federal Reserve cutting interest rates soon. While a general sentiment of enduring high U.S. interest rates pressurizing risk assets, including cryptocurrencies, prevails, the likelihood of the Federal Reserve boosting rates more during the upcoming Federal Open Market Committee (FOMC) meeting on November 1, stands at a mere 7.4% as per the data from CME Group's FedWatch.
Crypto traders who have exercised caution anticipate no abrupt rise in the short term, while Skew, a well-known trader, tagged $26,800 as the decisive mark for Bitcoin's bullish takeoff. By observing Material Indicators, an absence of bid liquidity is noticeable above the essential past two-quarter's level of $24,750. Co-founder Keith Alan, expressing his views on the macro factors before the CPI, indicated a pessimistic take on Bitcoin's price. Trading firm QCP capital stated the persistent downward trend of Bitcoin and Ether, the largest altcoin, despite favorable elements in the Q4. It urged close monitoring of the critical levels for determining the next trend.
This text does not contain investment advice or suggestions. Any investment or trading movement carries risk, and individuals should undertake their own research prior to making a decision.
Published At
10/12/2023 1:02:04 PM
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