The leading cryptocurrency, Bitcoin, is trading below the $80,000 level, influenced by upcoming US inflation data and increasing expectations of a Fed interest rate hike. After rising above $82,000 last week, Bitcoin gave back some of its gains following the strong employment data released on Friday.
Markets are now focused on the Producer Price Index (PPI) and Consumer Price Index (CPI) data to be released in the US.
Bitcoin’s Eyes on US Inflation Data; Possibility of Interest Rate Hike Puts Pressure on Bitcoin!
Employment data released in the US on Friday influenced expectations regarding the Fed’s interest rate policy. Following the strong economic data, markets began to price in a higher probability of the Fed raising interest rates in September.
According to analysts, changes in interest rate expectations are putting upward pressure on US Treasury yields and the dollar, while increasing selling pressure on risky assets like Bitcoin.
Therefore, investors are now closely watching how the upcoming inflation data will change expectations regarding the Fed’s monetary policy.
Speaking to The Block, LMAX Group Market Strategist Joel Kruger said BTC is holding up, stating, “The Bitcoin and cryptocurrency market continues to show extraordinary resilience despite many reasons for a correction. Bitcoin is holding around $80,000 after the aggressive rise in August, and this rise has given momentum towards the overbought zone.”
Kruger also noted that Treasury bond yields had risen and oil prices had increased following recent tensions between the US and Iran, adding, “What’s remarkable is that cryptocurrencies have absorbed these negative effects without suffering any significant technical damage.”
QCP Capital Reveals Critical Levels for Bitcoin!
QCP Capital, one of the leading cryptocurrency market analysis companies, shared its short-term price predictions for Bitcoin.
At this point, QCP Capital states that the $80,000 to $82,000 range is a critical resistance zone for BTC. According to analysts, if Bitcoin fails to break through this zone, selling pressure may intensify.
Conversely, in downward movements, the 77,000 to 78,000 dollar range stands out as an important support zone.
QCP Capital notes that daily inflows and outflows in spot Bitcoin ETFs are volatile as investors adjust their positions ahead of new economic data.
Finally, analysts noted that markets are currently closely watching the US PPI and CPI data to be released this week, adding that higher-than-expected inflation data could strengthen the likelihood of interest rate hikes and put further downward pressure on Bitcoin.
