The Bitcoin price threatens the lowest weekly industry since 2020 as inflation scares the markets
Bitcoin (BTC) fell to a two-week low on June 11 when this week’s Wall Street trading ended with bears in control.
US inflationary pressures show setbacks
Data from Cointelegraph Markets Pro and TradingView followed BTC / USD when they reached $ 28,528 on Bitstamp, the lowest since May 28th.
The pair had fallen in line with the stock markets on June 10, and these ended the week noticeably down – the S&P 500 and Nasdaq Composite lost 2.9% and 3.5%, respectively.
This came on the back of surprisingly high inflation data from the US, which took a turn for the worse in stark contrast to expectations. As the Cointelegraph previously reported, with 8.6%, annual inflation reached its highest level since December 1981.
By reacting, market commentators were therefore firmly on the bearish side when it came to future BTC price action.
“When we fall to $ 22,000 – $ 24,000 on Bitcoin, they will demand lower Do not be too greedy when the time comes,” the popular Twitter account Crypto Tony told followers.
Filbfilb, co-founder of the trading package DecenTrader, meanwhile, contrast the current environment with the COVID-19 crash in March 2020. This year’s slow bleeding, he claimed, was about something more painful than the then “car accident” price declines that briefly took Bitcoin to $ 3600.
“Inflation has not reached its peak, and neither has Bitcoin,” MicroStrategy CEO Michael Saylor offered at a more hopeful angle after the computer printout.
“In the current macro backdrop, it does not matter how many charts show confluence that we reach historically oversold levels,” the popular Twitter account PlanC countered:
“As long as Bitcoin remains correlated with risk on assets, I do not see a significant trend reversal right away.”
Should it end the week at current levels or below $ 29,450, meanwhile, BTC / USD would threaten its lowest weekly closing time since December 2020.
Doubts arise about interest rate increases
Looking ahead, future decisions on interest rate increases in response to inflation were intended to be the main focus in the coming week.
Related: The BTC price snatches its longest losing streak in history – 5 things to know in Bitcoin this week
Federal Reserves Federal Open Markets Committee (FOMC) minutes, to be held at the meeting 14-15. June, will provide clues as to how aggressive decision makers plan to be when it comes to curbing price increases.
“I believe that at some point the market will realize that inflation will not disappear soon and that prices will remain relatively low,” Twitter account Daan Crypto Trades argued.
It added that gold could provide an early indication of the “new old” trend by rising from its current trading channel.
«$ GOLD can be the leading factor in such a shift. Watch it closely. Right now we are still in the process of baking in the bad factors “, it said in a post on the day.
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