🗣Hello friends. Today the crypto market was focused on the inflation data coming from the US. The September CPI data was announced, and the result was not very encouraging.
So, let me explain right away why rising inflation affects Bitcoin.
🧙First, let’s look at the numbers, friends.
🔸Previous inflation: 3.4%
🔸Market expectation: 3.6%
🔸Announced inflation: 3.7%
🔸Core inflation: 2.6%
🧙Now let’s get to the main issue. In the US, inflation coming in above expectations strengthens the anticipation that the Fed could raise interest rates. Because as inflation rises, the possibility increases that the Fed will implement tighter monetary policy to keep price increases under control.
🧙If you ask what this has to do with Bitcoin, the answer is actually quite simple. While expectations of higher interest rates support the dollar and bond yields, they can create selling pressure on risk assets like Bitcoin. However, this does not necessarily mean that Bitcoin will fall, friends.
🧙Looking at Bitcoin, after the data we saw it pull back below 83,000 dollars.
🔸80,000-81,000$ The support zone I am watching.
🔸84,000-85,000$ The resistance zone I am watching.
🧙In particular, it would be useful to follow the 4-hour closes and trading volume, friends. Also, there is a Fed meeting on October 27-28. Therefore, we should pay attention not only to the Bitcoin chart, but also to the economic data coming from the US.
⚠️As you know, my posts are not investment advice. DYOR
#bitcoin $BTC
So, let me explain right away why rising inflation affects Bitcoin.
🧙First, let’s look at the numbers, friends.
🔸Previous inflation: 3.4%
🔸Market expectation: 3.6%
🔸Announced inflation: 3.7%
🔸Core inflation: 2.6%
🧙Now let’s get to the main issue. In the US, inflation coming in above expectations strengthens the anticipation that the Fed could raise interest rates. Because as inflation rises, the possibility increases that the Fed will implement tighter monetary policy to keep price increases under control.
🧙If you ask what this has to do with Bitcoin, the answer is actually quite simple. While expectations of higher interest rates support the dollar and bond yields, they can create selling pressure on risk assets like Bitcoin. However, this does not necessarily mean that Bitcoin will fall, friends.
🧙Looking at Bitcoin, after the data we saw it pull back below 83,000 dollars.
🔸80,000-81,000$ The support zone I am watching.
🔸84,000-85,000$ The resistance zone I am watching.
🧙In particular, it would be useful to follow the 4-hour closes and trading volume, friends. Also, there is a Fed meeting on October 27-28. Therefore, we should pay attention not only to the Bitcoin chart, but also to the economic data coming from the US.
⚠️As you know, my posts are not investment advice. DYOR
#bitcoin $BTC