Bitcoin Tumbles on Hot CPI Data, But This Analyst Stays Ultra Bullish: Here’s Why
11 April 2024 - 1:00AM
NEWSBTC
The better-than-expected United States 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. United States CPI Data Came In Hot According to Trading
Economics data on April 10, CPI, a key economic metric for gauging
inflation, rose 0.4% in March, pushing the annual inflation rate to
3.5%. Notably, this surpassed economist predictions and, most
importantly, dashed hopes for the United States Federal Reserve
(Fed) to slash rates aggressively this year. However, amidst the
market jitters, Matt Hougan, the CIO of Bitwise Asset Management,
offered a contrarian perspective as fear permeated the Bitcoin and
crypto market. In a post on X, Hougan downplayed the
influence of the CPI data on Bitcoin’s long-term trajectory.
Related Reading: XRP Heading To $100-$500? Analyst Provides
Speculated Timeframes The executive argues that investors and
traders should track other market factors like spot Bitcoin
exchange-traded fund (ETF) inflows and rising government deficits.
In Hougan’s assessment, these can strongly influence price, even
lifting Bitcoin higher since they are currently aligned. Time To
Buy The Bitcoin Dip? As such, even with the fall in BTC, the drop
could offer potential buying opportunities for long-term holders.
Some supporters believe the “hot” CPI data only exposes the
vulnerabilities of fiat currencies. This would potentially drive
investors to use Bitcoin as a hedge. Moreover, this upbeat
sentiment is backed by solid demand for gold, a store of value
asset preferred by traditional finance investors. Analysts
anticipate Bitcoin will follow a similar path as investors seek to
protect value amid rising inflation. Further bolstering the bullish
sentiment is the possibility of a spot Bitcoin
ETF launch in Hong Kong before the end of April. The Hong
Kong Securities and Futures Commission (SFC) has been assessing
various applications. Leading Chinese asset managers have submitted
some. If the product is approved, it could further channel more
capital to BTC, boosting inflows from the United States. When
writing, BTC is steady but under pressure. April 9’s losses have
been confirmed. The coin might track lower if bulls fail to push
prices above all-time highs of around $74,000. Related Reading:
Analyst Says Bitcoin Halving Influence Is No Longer Driving Price,
Here’s What Is Bitcoin remains in a broader bullish formation,
technically moving inside a rising wedge. This bullish outlook will
only be invalidated if prices tank below $61,500 in the sessions
ahead. Feature image from DALLE, chart from TradingView
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