- The cryptocurrency market is experiencing a tense week, with Bitcoin (BTC), the world’s largest cryptocurrency, trading amidst concerns over US macroeconomic data.
- On Wednesday, Bitcoin experienced a 1% drop, falling below $62,000 due to these concerns.
- Investors are closely monitoring the Consumer Price Index (CPI) data to be announced on Wednesday, with expectations generally positive.
Bitcoin’s price drops amidst concerns over US macroeconomic data, with investors closely watching the upcoming CPI data. The article delves into the potential impact of the CPI data on Bitcoin’s price.
Bitcoin’s Price Drop Amidst CPI Expectations
The world’s largest cryptocurrency, Bitcoin (BTC), experienced a slight loss in value. It saw a 1% drop due to concerns over US macroeconomic data, falling below $62,000. Over the past 24 hours, more than $100 million worth of BTC long positions have been liquidated. HODL15Capital shared predictions about market trends by examining the recent on-chain activity in Bitcoin. While small investors continue to sell, investors holding 100 BTC or more made net sales for the first time.
What are the expectations?
Investors are closely monitoring inflation data for April. An improvement in the Consumer Price Index (CPI) compared to March is expected. However, according to a report prepared by Zerocap, an unexpectedly high CPI figure could be critical, potentially causing Bitcoin’s price to drop by 13% to $53,000. Here are some analyst views:
- Kyle Rodda (Capital.com): “Market sentiment is tied to today’s US CPI report. Even though expectations are positive, if the lowest core CPI rate in over 3 years occurs, a larger drop surprise will be needed to alleviate concerns about sticky and re-anchored inflation.”
- Will Woo (Bitcoin Analyst): Woo observes a rising trend in global liquidity. Specifically, he predicts a price increase before October 2024, signaling a historic period for Bitcoin until 2025.
High Network and Whale Activity
Bitcoin is trading at $61,915 with a market value reaching $1.2 trillion. However, network activity and whale movements show a worrying situation. According to Santiment, network activity is decreasing, and whales are also moving away from large transactions. Outages and withdrawal freezes on platforms like Coinbase are exacerbating this situation. Santiment suggests that this situation could create enough FUD (Fear, Uncertainty, and Doubt) to lead to a recovery in the near future.
Conclusion
In the short term, Bitcoin’s price will continue to fluctuate according to US CPI data and overall market risk appetite. Long-term analysts argue that a decrease in inflation and an increase in global liquidity could trigger an upward trend in Bitcoin’s price.
