The Bitcoin price hits the 7-day lowest level as the US warns of “highly elevated” CPI data
Bitcoin (BTC) carried out threats of new local lows on July 12 when the White House warned of “high-rise” inflation.
The White House warns ahead of “crucial day”
Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD approached $ 19,500 before Wall Street opened, down over 4% on the day.
After failing to hold $ 20,300 support, the couple seemed to react poorly to comments about the inflation outlook from White House Press Secretary Karine Jean-Pierre.
The markets were already prepared for higher-than-expected figures for June from the consumer price index (CPI), which reached new forty-year highs in May.
“So on Wednesday we will have new CPI inflation data, and we expect the headline figure, which includes gas and food, to be highly elevated, mainly because gas prices were so high in June,” she told reporters at a July 11 news conference.
The $ 19,520 trip, meanwhile, marked Bitcoin’s lowest level in a week.
“Tomorrow is going to be crucial,” Cointelegraph contributor Michaël van de Poppe said told Twitter followers.
He added that the worst reaction should come before the CPI data release, but that the US Dollar Index (DXY), even at its highest in two decades, remained a source of interest.
“To be honest, ‘sell the rumor, buy the news’ seems to be an implication,” the tweet continued.
“Charts to see tomorrow: $ DXY and the yield on government bonds + reaction to Brent oil.”
Particularly high inflation risks losses across risk assets due to the associated risk of monetary tightening by central banks to tame it, which has already been seen in the US DXY, as the Cointelegraph reported, often makes crucial upward moves in times of financial weakness.
Psst … the dollar $ DXY tells us that inflation has not reached its peak.
– Caleb Franzen (@CalebFranzen) July 11, 2022
DXY stood at 108.47 at the time of writing, having risen higher into the new week to reach its strongest levels since October 2002.
“Not interested in going into CPI tomorrow, personally looking at a $ 20.3K and / or $ 19.3-19.5K recovery,” Van de Poppe added about potential plans to act on the coming turbulence.
Ethereum price drops 8%
On altcoins, daily losses rose above 5%, but the top ten cryptocurrencies by market value were led by Ether (ETH), down 8% in 24 hours.
Related: Price analysis 7/11: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, SHIB, AVAX
ETH / USD traded at $ 1,060 at the time of writing, approaching daily support levels since mid-June
“If things stay the same and Altcoins continue to struggle to break important opponents … Altcoins may have to experience at least an extra -30% of the downside,” popular trader and analyst Rekt Capital commented at the beginning of the week.
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