BITCOIN (BTC) fell 1.8% after US inflation data on February 12, raising the cryptocurrency to the lowest level in nine days. As the US reported that the CPI (Consumer Frice Index) increased 3% year -on -year in January, price modifications were accelerated by re -examination of $ 94,200.
Merchants have questioned whether Bitcoin can still reach $ 100,000 on the potential impacts of the recent policy measures introduced by the Trump administration, including tariffs and more.
S & P 500 index futures (left) vs. bitcoin/USD. Source: TradingView / COINTELEGRAPH
The stock market also responded negatively to the inflation report, and the S & P 500 future benefited from the previous eight sessions. This is led by Bitcoin’s recent stagnation, which is largely led by a wide range of market feelings and fear of transmission, strengthening the perception of continuous correlation between stocks and digital assets.
Short -term traders have reduced Bitcoin exposure due to the 40 -day correlation between S & P 500 and 65%. But in a wider point of view, higher inflation usually benefits the lack of assets like Bitcoin, and the price should be raised to maintain a profit margin. .
Additional Softbank loss and BTC mining profitability Bitcoin holders are added to concerns
Bitcoin investors are faced with additional pressure from Softbank, a Japanese financial company, famous for its venture capital investment technology. The company reported losses of $ 2.4 billion in the fourth quarter after the second quarter. The stocks of Softbank, listed on the Tokyo Stock Exchange, finally closed with a market cap of $ 93.7 billion.
Most investors still see Bitcoin as a risk asset, which means the loss of soft bank portfolio, especially in Chinese e -commerce and electric vehicle manufacturers.
US 10 -year note rate (left) vs. US dollar DXY index. Source: TradingView / COINTELEGRAPH
As the DXY index increased from 107.90 to 108.40 on February 11, these risk avoidance was reflected in the US dollar. Similarly, the US 10 -year financial yield increased from 4.54%to 4.65%, strengthening its transition to a safe asset.
Added to Bitcoin’s weak sentiment was to reduce the profitability of the miners measured by the hashrate price index. Due to the decrease in demand for block spaces, concerns have been raised that the transaction fee is pressure to stop the operation of high energy costs.
Bitcoin hashrate index, pH/second. Source: HashrateIndex
The Bitcoin Hashrate Index integrates network difficulty, bitcoin prices, block compensation and trading fees, measuring the expected revenue of 1 terahash (th/s) per second per second of a day. To soften the fluctuations, the index applies a simple 24 -hour moving average.
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If the miner revenue decreases, the energy cost is high or the efficient hardware such as the previous generation ASICS is less pressure to end the operation when the hashrate index falls. Some investors argue that the hashrate is lowered, which weakens network security, which reduces security by increasing the risk of negative cycles that push more miners in the market.
This theory has not been embodied in the previous cycle, but the long -term sustainability of the Bitcoin security model remains the subject of debate. Half of the coming Bitcoin reduces mining incentives, and network security is increasingly dependent on the demand for transaction fees and block spaces.
The problem of macroeconomic factors, venture capital achievements, and profitability issues in the emotions, but this development alone does not justify Bitcoin transactions to less than $ 95,000. Cryptocurrency is maintained as a risk -off investment in the perspective of Blackrock, the world’s largest asset manager.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.