The week’s Wall Street trading ended as bears took control. Thus, Bitcoin (BTC) fell to two-week lows on June 12. At the time of writing, the cryptocurrency is changing hands at $27,665, down 5.4 percent. So, what levels are next? Here are the analysts’ comments and expectations…
US inflation pressure lowered the price of Bitcoin
According to the data, Bitcoin (BTC) fell below $28,000 and saw $27,400 levels during the day. The USD/BTC pair fell on June 10 in line with the equity markets. US stocks ended the week with a marked decline. The S&P 500 and Nasdaq Composite lost 2.9 percent and 3.5 percent, respectively. Contrary to expectations, this decline came after high inflation data from the USA, where the worst was seen. As we reported on Cryptokoin.com , annual inflation of 8.6 percent reached its highest level since December 1981.
Reacting market commentators were firmly on the bearish side when it came to future BTC price action. Popular Twitter account Crypto Tony told his followers, “When we hit $22,000 – $24,000 in Bitcoin, they will drop even more. When the time comes, don’t be too greedy.”
Are we in the same situation as in March 2020?
Meanwhile, Filbfilb, co-founder of trade package Decentrader, compared the current environment to the March 2020 COVID-19 crash. He argued that this year’s slow decline is more painful than what was seen in March 2020, which briefly plunged Bitcoin to $3,600. MicroStrategy CEO Michael Saylor gave a more hopeful comment after the data press. “Inflation has not peaked and neither has Bitcoin risen,” he said. Popular Twitter account PlanC used the following statements:
In the current macro environment, it doesn’t matter how many charts converge that show we’ve reached historically oversold levels. As long as Bitcoin remains associated with risky assets, I don’t see any major trend reversal any time soon.
Meanwhile, according to the analyst, if BTC ends the week at current levels or below $29,450; BTC/USD is in danger of hitting its lowest weekly close since December 2020.
Doubts about rate hike increase
Looking to the future, decisions to be taken regarding rate hikes in response to inflation are set to be the main focus of the coming week. Federal Open Markets Committee (FOMC) minutes for the Fed’s June 14-15 meeting will provide clues as to how aggressive policymakers plan to be when it comes to curbing price increases. “I think at some point the market will realize that inflation isn’t going down anytime soon and rates will still be relatively low,” Twitter account Daan Crypto Trades said. He added that gold could provide an early indicator of this “new old” trend by rising from the current trading channel.
Gold could be the leading factor in such a shift. I’m watching this closely. Currently, we are still in the process of living with bad factors.
