Bitcoin (BTC) On Wednesday, it went into a holding mode ahead of data that is likely to see a big spike in US inflation.
BTC is hovering above $19,000 and is expected to remain at this level until US inflation data is released. The Consumer Price Index (CPI) is expected to increase by about 8.8% yoy in June, the fastest increase in the last 40 years.
The data will be announced at 15:30 TSI.
Rising inflation in the USA was one of the most important factors pulling the BTC price back in 2022, as it triggered the FED to increase interest rates.
A strong inflation data to be released on Wednesday is likely to lead to further depreciation in BTC.
Bitcoin Short Positions Increase Ahead of Inflation Data
Data from Arcane Research shows that institutional investors are piling on BTC before inflation data. This is done through buying into short Bitcoin ETFs like BITI and BITO.
BTC has lost 52% in the last three months and most of its losses were triggered right after the high inflation data.
BTC’s reaction to the June data will also depend on the data. A higher-than-expected data would push it further below $20,000. But a more balanced reading can support short-term gains.
Investors Wait for Inflation Data
A fake inflation report released on Tuesday cryptocurrency It caused broad-based losses in the market for a short time, pulling BTC below $ 20,000. Given the strong reaction to the report, it seems that investors are uneasy about the upcoming inflation data.
To get the last minute inflation data, you can follow our Twitter account: https://twitter.com/bitcoinsistemi
*Not investment advice.