The Bitcoin price can slowly focus again on the $ 25,000 mark. After the spectacular increases of the past few days, that limit is again in sight. Earlier this year, the bulls were still struggling with that psychological barrier.
Time for inflation
While the storm surrounding the problems for the American banks has not even subsided yet, it is already time for a new inflation print. The year 2022 and the first months of 2023 were still dominated by inflation and interest rate hikes by the Federal Reserve.
Today at 13:30 Dutch time we will receive new inflation data from the United States. The consumer price index is expected to come in at 6.0 percent, compared to 6.4 percent last month. In that respect, inflation is really starting to come down, but the Federal Reserve is not there yet.
However, the problems of the US banks, which are clearly unable to cope with the current higher interest rates, mean that the market expects the Federal Reserve to be done with interest rate hikes.
At the time of writing, the market believes there is a 43.9 percent chance that interest rates will remain at current levels at the next interest rate meeting. The remaining 56.1 percent will go to a small rate increase of 0.25 percent. That is basically good news for Bitcoin.
Biden is optimistic
US President Joe Biden left in a press conference know that he is bullish on today’s CPI print. “I am optimistic about next week’s CPI. Hopefully we’re in good shape,” Biden said.
Not everyone trusts the figures that the United States will publish today. If you ask the popular xTrends, they may be manipulating the numbers to avoid a market crash.
“I believe tomorrow’s CPI is manipulated to avoid a crash, then quietly revise it several weeks later, as they did with the last few CPI prints,” xTrends said.
Ark Invest’s Cathie Wood is even asking the Federal Reserve to change course. “If the Fed continues to focus on lagging indicators, such as the CPI, and does not change course in response to the deflationary forces presented by the yield curve inversion, this crisis will swallow more regional banks and the US banking system centralize,” said Wood.