The price of Bitcoin is currently struggling to move above $22,000 and it all has to do with an important Valentine’s Day for the financial markets. Today the American version of the Central Bureau of Statistics announces the new inflation figures. For financial markets, 2022 was almost entirely marked by rapidly rising global inflation and subsequent interest rate hikes by central banks.
“Prepare for volatility”
2023 is off to a good start for the cryptocurrency market, with Bitcoin up nearly 40% in January. But for now there is a lull and the bulls and bears are neck and neck. We are currently awaiting US inflation data, which analysts believe will bring back volatility.
“We will likely get a bitcoin pump to $24,000-$25,000 as the numbers show more disinflation. A negative surprise likely means the opposite with possible Bitcoin prices of $19,000 to $20,000. It’s going to be a very important day. Prepare for volatility,” Venturefounder told on-chain analytics platform CryptoQuant.
The consumer price index (CPI) is expected to be 6.2 percent, compared to 6.4 percent last month. However, an increase of 0.5% is expected from December to January, which is not exactly positive. “These are pretty high expectations when you compare them to the trend,” says Dutch analyst Michaël van de Poppe.
CPI is “critical” to the market
According to trading company QCP Capital, the outlook for Bitcoin is not very positive for the foreseeable future. In the latest market update, the company points to other factors that are currently negatively impacting the share price. It mentions, among other things, the upcoming legal battle between Paxos and the American authorities about the future of the Binance USD (BUSD) stablecoin exchange platform.
“The hammer of the legislature is still hovering over the market (potentially leading to the 2024 election), so the potential for upward price action appears limited. In that regard, current CPI pressures are critical in understanding how far the market may lose ground,” said QCP Capital.
According to trading, there is also a discrepancy between market expectations and reality regarding Federal Reserve policy. Although the market expects interest rates to fall in 2023, QCP Capital sees no reason to do so at the moment.
Exchange counterfeit dollars for bitcoin
If writer and investor Robert Kiyosaki has his way, we should brace ourselves for a carnage today. The popular investor has been bearish about the markets for years. Kiyosaki has said several times in the past that he is hedging against the crash by buying bitcoin, gold and silver. “I buy more gold, silver and bitcoin. Real money with fake dollars,” said the author of the famous book Rich dad poor dad.
Only time will tell if Kiyosaki is right. The well-known author is currently backing up his predictions of a collapse in the US economy, mainly with layoffs in the technology industry. Among other things, it discusses the 144,000 layoffs in Silicon Valley in 2022 and the 60,000 additional layoffs that followed in 2023. All in all, it promises to be an exciting Valentine’s Day.
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Source: Btc Direct
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
