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The U.S. consumer price index (CPI) rose 3.8% annually, 10 basis points higher than economists expected. Currently, analysts are uncertain about how the Federal Reserve will approach interest rate cuts in 2024, which could directly impact the performance of assets such as Bitcoin (BTC).
Despite a quick 2% correction after the CPI numbers came out, BTC made a sharp recovery, reclaiming the $70,000 price level and growing 1.8% in the last 24 hours.
Moreover, according to a trader who identified himself as Rekt Capital, Bitcoin is stuck in a narrow price range in the short term, starting from the previous all-time high of $69,000 and ending at $71,300. This situation opens up the possibility of integration in the future.
In an April 9 post on
There are only two bargain buying opportunities left for Bitcoin before the price is reflected in price discovery.
There is a pre-halving retracement (dark blue circle).
And then there is the reaccumulation phase (red).
Bitcoin has already experienced a -18% pre-halving retracement… pic.twitter.com/OBkdTyMFr8
— Rekt Capital (@rektcapital) April 8, 2024
On a more fundamental note, Fideum co-founder Darren Franceschini believes that the better-than-expected CPI numbers “make Bitcoin’s future shine even brighter.”
“Given its limited supply and reputation as a solid hedge against inflation, Bitcoin naturally stands out as a solid hedge for investors weathering the storm of rising prices. And let’s not overlook the upcoming halving event. These periodic halvings not only highlight Bitcoin’s scarcity but also tend to spark significant interest and speculation,” adds Franceschini.
In the Fideum co-founder’s view, this new macroeconomic development could boost Bitcoin’s appeal to new investors eager for a safe haven, bringing a new wave of capital into the market.
“It is a very exciting time to be part of this journey, and I am eager to see how the marriage of economics and technology unfolds to shape our financial future,” he concluded.
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