The better-than-expected US Consumer Price Index (CPI), released on April 10, is already sending shock waves through the financial market. bitcoin and most crypto assets are trading lower, extending losses recorded on April 9, weighing negatively against optimists.
US CPI data became popular
According to commercial economics data On April 10, the CPI, a key economic metric for measuring inflation, rose 0.4% in March, raising the annual inflation rate to 3.5%. Notably, this exceeded economists' predictions and, more importantly, dashed hopes that the US Federal Reserve (Fed) would aggressively cut rates this year.
However, amid the market jitters, Matt Hougan, CIO of Bitwise Asset Management, offered a contrarian perspective as fear permeated the bitcoin and cryptocurrency market. in a twitter.com/Matt_Hougan/status/1778048008384295139″ target=”_blank” rel=”nofollow”>mail At x, Hougan downplayed the influence of CPI data on bitcoin's long-term trajectory.
The executive maintains that investors and traders should monitor other market factors, such as inflows into bitcoin exchange-traded funds (ETFs) and rising government deficits. In Hougan's assessment, these can strongly influence the price, even lifting bitcoin, as they are currently aligned.
Is it time to buy the bitcoin dip?
As such, even with btc falling, the drop could offer potential buying opportunities for long-term holders. Some supporters believe that the “hot” CPI data only exposes the vulnerabilities of fiat currencies. This could lead investors to use bitcoin as a hedge.
Furthermore, this optimistic sentiment is supported by strong demand for gold, a store of value asset preferred by traditional financial investors. Analysts anticipate bitcoin will follow a similar path as investors look to protect value amid rising inflation.
Further bolstering the bullish sentiment is the possibility of a spot bitcoin ETF. bitcoin-etfs-april-sources-say-2024-04-10/” target=”_blank” rel=”nofollow”>launch in Hong Kong before the end of April.
The Hong Kong Securities and Futures Commission (SFC) has been evaluating several applications. Major Chinese asset managers have introduced some. If the product is approved, it could funnel even more capital into btc, boosting inflows from the United States.
As of writing, btc remains stable but under pressure. The losses of April 9 have been confirmed. The coin could decline if the bulls fail to push prices above all-time highs around $74,000.
bitcoin remains in a broader bullish formation, technically moving within a rising wedge. This bullish outlook will only be invalidated if prices fall below $61,500 in the coming sessions.
Featured image of DALLE, TradingView chart
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
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