- September 15, 2023
- Posted by: [email protected]
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Bitcoin’s price has been on edge as it clings to the $26,000 level, with cryptocurrency traders closely monitoring the Wall Street open in the wake of the recent Consumer Price Index (CPI) report. On September 13, Bitcoin experienced sudden volatility, reacting to macroeconomic data from the United States that revealed inflation had surpassed expectations.
Cryptocurrency analysts observed Bitcoin’s price closely as it threatened to dip below the crucial $26,000 threshold. The August CPI data showed a year-on-year inflation rate of 3.7%, exceeding predictions by 0.1%. According to the US Bureau of Labour Statistics, the increase in gasoline prices was the largest driver of the overall rise in the CPI, accounting for more than half of the hike. Furthermore, the shelter index increased for the 40th consecutive month, contributing to the monthly increase.
Before the CPI report’s release, some participants in the crypto market had already expressed concerns that a high CPI reading could exert pressure on the market. A higher inflation rate implies that inflation is persisting at a level greater than anticipated, potentially influencing future economic policy decisions to remain more restrictive.
CrypNuevo, a trader, projected on social media that the next CPI report would show an even higher inflation rate of more than 4%, owing to the rapid rise in gasoline prices. He emphasized that inflation remains a significant concern, particularly in the latter part of the year.
The August CPI figure had already been anticipated to surpass the July year-on-year reading, coming in at 3.6% compared to the previous 3.2%. Despite some fading momentum, Keith Alan, co-founder of on-chain monitoring resource Material Indicators, expressed optimism regarding Bitcoin’s price momentum for the week. He noted that Bitcoin’s strength had retained most of the gains made after a recent bounce. However, he cautioned that several technical resistance levels loomed above the current spot price, including multiple daily moving averages.
As the Wall Street open approached, Bitcoin’s volatility remained a factor to watch, and its trend was unclear at the time of writing. A snapshot of the BTC/USDT order book on the largest global exchange, Binance, indicated modest liquidity around the spot price, with more buy orders positioned at the $25,000 level. Bitcoin’s performance will likely continue to be influenced by economic indicators and market sentiment in the coming days.
