Threatening weekly closing since 2020 as inflation spooks the market, Bitcoin is at its lowest
Bitcoin price action must retrieve the $29,500 mark to dodge resuming its pattern of lower lows on the weekly chart.
Bitcoin fell to two-week lows on June 11 as the week’s Wall Street trading ended with gains in control.
According to Cointelegraph, Markets Pro and TradingView followed BTC/USD as it reached $28,528 on Bitstamp, its lowest since May 28.
The pair had fallen in pace with stock markets on June 10, these finishing the week prominently down — the S&P 500 and Nasdaq Composite lost 2.9% and 3.5% correspondingly.
This was on the back of amazingly high inflation data from the United States, which took a turn for the worst in stark contrast to prospects. As Cointelegraph reported, at 8.6%, annual inflation was the highest since December 1981.
Reacting, market commentators were thus inflexibly on the bearish side when it came to future BTC price deeds.
Popular Twitter account PlanC countered “When we drop to $22,000 – $24,000 on Bitcoin, they will call for lower Don’t be too greedy when the time comes,” He added
“As long as Bitcoin remains correlated to risk-on assets, I don’t see a significant trend reversal anytime soon.”
If it were to finish the week at existing levels or any below $29,450, meanwhile, BTC/USD would be at its lowest weekly close since December 2020.
Looking ahead, approaching decisions on rate treks in response to inflation were expected to be the major focus of the coming week.
The Federal Reserve’s Federal Open Markets Committee (FOMC) minutes, owing for the meeting on June 14-15, will provide clues on how antagonistic policymakers plan to be regarding restricting price rises.
Twitter account Daan Crypto Trades claimed, “I think that at some point, the market will realize that inflation is not going away soon and that rates will still be relatively low.”
It added that gold could provide an early sign of that “new old” trend by increasing from its current trading channel.
A post on the day read “$GOLD could be the leading factor in such a shift. Closely watching that. Right now, we’re still in the process of baking in the ba d factors.”
