Bitcoin outwits bears: $1,800 losses are replaced by even greater gains at the beginning of Wall Street trading.
Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD dropped $1,800 following January’s CPI print of 7.5%.
Although the inflation rate was 0.2% higher than anticipated, it failed to have the positive effect on Bitcoin and other risk assets that has characterized recent months.
Analysts suggested that the Federal Reserve might now be more motivated to increase interest rates sooner, given the rapid pace of year-on–year price rises.
The Consumer Price Index (CPI), results for the U.S.A. came in at 7.5% year over year, compared to 7.3% expected. Michael van de Poppe, a Cointelegraph contributor, said that DXY is rising and risk-on assets like Bitcoin & equities are falling down.
After the announcement of economic data, small-cap Russell 2000 index futures for U.S. companies fell 2%. Van de Poppe’s assessment is confirmed by this data, even though both the equities and Bitcoin recovered fully from the price drop in the hour that followed.
“Likelihood the FED will begin rate increases in March”
Scott Melker, a fellow trader and analyst, was not impressed by the market.
BTC price rises to $44,000
Wall Street trading had already begun on February 10, but Bitcoin did more than just reverse its losses and hit a new high of almost $45,400.
Related: Bitcoin prices at $44K, MACD gives long-awaited bull signal
BTC/USD also avoided a retest at recent support. $42,000 was the lowest level yet to be tested.
Cointelegraph previously reported on potential resistance zones for bulls to overcome to keep their momentum up.
A Bitcoin uptrend would be very powerful in the face macro uncertainty. This shifts the narrative away from TradFi’s court, with BTC becoming a risk-on asset and BTC becoming purely a story about global adoption and the ensuing game theory. Analyst William Clemente said that it was interesting to see how many macro bros had offloaded inventory.
