Bloomberg News reports that the largest digital currency was found holding to a pattern ahead of the inflation numbers in the US on Wednesday that could trigger volatility afresh in the crypto market.
The largest cryptocurrency, Bitcoin, was holding at $19500 while trading in Asia. Very little was found changing on the same day but was found to drop by 11% since the last weekend. There was calm in the global markets as the investors were found taking a collective breath deeply as the countdown to the inflation data is approaching.
A weaker reading can enliven the mood in the market. It was also noticed that a print top of anticipations of 8.8% might lead to hardening bets related to Federal Reserve monetary tightening and giving rise to speculative investments, including cryptocurrencies, afresh.
According to research head of Pepperstone Group, Chris Weston, headline inflation of less than 8.5% might lead to a situation where crypto might go up 5% plus and the dollar might slide universally.
A Breather
Three factors contributing to a 58% slide in the largest digital currency in 2022 include a hike in Fed rates, collapsing Three Arrow Capitals, a crypto hedge fund, and a meltdown in the Terra ecosystem.
The total market value of crypto was around $906 billion recorded on Wednesday, as per CoinGecko. This figure is down from the November figure of $3 trillion.
Bloomberg News reports that Katie Stockton, co-founder of Fairlead Strategies, is a technical analyst and stated at the beginning of this week that keeping in mind a perspective for the long-term, the downward momentum is escalating. According to Katie, it could be such that Bitcoin could test the price range between $18,300 and $19,500.
