According to a tweet from esteemed analyst Michaël van de Poppe, the US inflation is poised to endure, leading to a potential price correction for Bitcoin before the upcoming FOMC meeting. Poppe further noted that despite a lower consumer price index (CPI), specific metrics suggest that inflation may persist longer than initially anticipated.
According to the analyst, the eagerly anticipated Producer Price Index (PPI) report set to be unveiled today is poised to validate the current trend, thereby prompting a shift in market sentiment towards a plausible interest rate hike of either 25 or 50 basis points.
In a recent survey conducted by esteemed crypto lawyer John Deaton, crypto community members were asked to share their predictions regarding the actions of the US reserve bank amidst the current banking crisis and the prevalence of bank runs. The results revealed that while 44% of respondents anticipated a pause, a significant number of participants believed that an increase in interest rates was imminent. These insights provide valuable perspectives on the potential future of the banking sector and its impact on the broader economy.
In light of recent upheavals in the American banking sector, the cryptocurrency market has experienced a significant surge in volume, with an impressive $100 billion increase in the past 24 hours, as reported by CoinMarketCap. Notably, Bitcoin (BTC) reached a nine-month high of $26,500 on Tuesday, following a dip below $19k just the week prior. These developments reflect the dynamic and ever-evolving nature of the financial landscape and serve as a reminder of the importance of staying informed and adaptable in the face of change.
According to CryptoQuant, a prominent data analytics company, the recent market downturn was caused by miners who decreased their reserves, thereby intensifying the strain on Bitcoin. Ethereum, Bitcoin’s primary competitor, also experienced a significant decline, dropping to approximately $1,370. Nevertheless, Ethereum has since rebounded from the crash and is trading at $1,679.
