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Bitcoin’s Rally Is Worrisome As US Inflation Data Hits A 40-Year Record

Bitcoin's Rally Is Worrisome As US Inflation Data Hits A 40-Year Record

Bitcoin (BTC) has recovered from the intraday low of $18,999 following the release of US inflation data and is currently trading above the $20,000 region.

BTC daily chart. Source: CoinCu

Bitcoin has had a positive response to the United States’ 40-year record-breaking data. Referring to the reaction of the US Federal Reserve to the latest CPI data, one analyst said that it is very unlikely that the Fed will raise interest rates more aggressively.

The Fed Pivot Indicator chart, which shows the change in the direction of the Fed’s interest rates over the past 33 years, shows that rate hikes have reached their maximum allowed level.

Fed Pivot Indicator Chart. Source: TheHappyHawaiian

Trader Michaël van de Poppe thinks that selling pressure is only a temporary situation and the long-term trend is still showing a bullish signal.

Other tokens in the top 10 cryptocurrencies by market capitalization also showed similar price action with Bitcoin, having now recovered from the plunge, with BNB up 5%, XRP up 3.3%, ADA increased by nearly 4%, SOL gained about 6% and DOGE gained 2.3% in the last 24 hours.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.