Bitcoin price targets range from $19K to $25K as CPI day dawns

2 years ago

Bitcoin (BTC) saw ongoing rejection beneath $22,000 into Feb. 14 arsenic markets braced for macroeconomic information impact.

Bitcoin vs. CPI: "Expect volatility"

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD failing to grow beyond $21,800 up of the United States Consumer Price Index (CPI) people for January.

Already called the “most important” CPI release, the data, owed astatine 8:30am Eastern Time, is simply a classical volatility catalyst for hazard assets.

Crypto marketplace participants frankincense expected a engaged trading day, with some $19,000 and $25,000 connected the array arsenic imaginable targets depending connected however acold the results enactment from estimates.

“Will astir apt spot that $24-25k Bitcoin pump if time morning's CPI fig shows much disinflation successful the affirmative direction,” Venturefounder, a contributor astatine on-chain analytics level CryptoQuant, wrote successful portion of a Twitter update.

“Conversely antagonistic astonishment would acceptable up a cleanable retest to $19-20k BTC A precise important day. Expect volatility.”

Year-on-year CPI was expected astatine 6.2% versus 6.4% the period prior, with the month-on-month speechmaking owed an uptick to 0.5% from 0.1%.

“Relatively precocious expectations if you harvester this with the erstwhile trend,” Cointelegraph contributor Michaël van de Poppe, laminitis and CEO of trading steadfast Eight, argued connected the day.

Van de Poppe was already betting connected the "end stage" of Bitcoin's existent retracement, with $20,500 the cardinal level for bulls to hold.

CPI "crucial" to find crypto losses

In its latest market update, meanwhile, trading steadfast QCP Capital flagged factors beyond the information arsenic origin for interest for crypto investors.

The ongoing legal proceedings against Blockchain steadfast Paxos and speech Binance’s BUSD stablecoin, it warned, could beryllium the extremity of the iceberg erstwhile it comes to U.S. regulatory policy.

“As the regulatory hammer is inactive retired against the manufacture (possibly until the 2024 election), the upside connected crypto's marketplace headdress looks adjacent much subdued from that position now,” it wrote.

“Hence, today's CPI people is crucially important to determine the grade of downside for crypto.”

QCP continued that determination was a mismatch betwixt expectations and world erstwhile it comes to the Federal Reserve lowering involvement rates contempt ostentation notionally subsiding.

“In the rates market, we are present pricing a 5.2% terminal complaint followed by a 30bp chopped by December 23, a monumental step-up from the 4.9% terminal and 50bp chopped conscionable 2 weeks ago,” the study highlighted.

“Risk assets person intelligibly not adjusted to this summation successful complaint expectations, and we expect today's people to bring each markets successful enactment - whether it is an outsized equities sell-off (on a fig higher than expected) oregon a rates rally (on a fig little than expected).”

The Fed is not owed to convene a complaint alteration gathering until the 3rd week of March, with different CPI people owed earlier then.

The views, thoughts and opinions expressed present are the authors’ unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.

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