Leading cryptocurrency analyst Michaël van de Poppe has said that inflation will continue in the US, which means that this will happen before the FOMC meeting. bitcoin believes it will lead to a correction in price.
Poppe said that while the consumer price index (CPI) is lower, some figures show that inflation will continue longer than expected. added.
The analyst also stated that the Producer Price Index data, which is expected to be released today, will also confirm this trend. This could ultimately result in a potential interest rate hike of 25 or 50 basis points in market sentiment.
Inflation will stick around, CPI is lower, but some numbers indicate that we’ll have it for longer.
NEWS CONTINUES BELOWPPI today, should be resulting into the same answer, hence probably sentiment flips towards 25bps/50bps again. #Bitcoin to correct until FOMC, relief rally after.
— Michaël van de Poppe (@CryptoMichNL) March 15, 2023
NEWS CONTINUES BELOW
Koinfinans.com As we reported, Attorney John Deaton recently shared a survey asking the crypto community for their views on what the U.S. reserve bank will do next, given the crisis in the banking industry and the collapse of so many banks. While 44% of respondents indicated that there will be a pause, many respondents believe there will be an increase in interest rates.
What will the Fed do next?
— John E Deaton (@JohnEDeaton1) March 14, 2023
After problems with leading US banks cryptocurrency market volume increased by $100 billion. Bitcoin (BTC) hit a nine-month high at $26,500 on Tuesday after falling below $19,000 the previous week.
CryptoQuant, a leading data analytics firm, blamed miners for the sudden crash the previous week and said they put extra pressure on Bitcoin by reducing their reserves. BTC’s main competitor, Ethereum (ETH), also lost significantly, dropping to around $1,370. However, ETH also recovered after the crash and is currently trading at $1,679.
You can follow the current price action here.