Why Analysts Say September’s CPI Could Help Bitcoin Break Out Of Its Price Range!
With US CPI data soon to be released sometime later today, a number of crypto analysts say that this might just be the thing needed to help push Bitcoin out of its current range these past couple of months.
Bitcoin’s Possible Change
On Thursday, October 13th, the U.S. Bureau of Labor Statistics will release data on September’s consumer price index (CPI). With the inflation rate being heavily reliant on the CPI, many in the crypto community have been nervous awaiting to see whether the data is bearish or bullish for the market.
In August, CPI was at 8.3%, and this September, CPI is reportedly expected to be 8.1%, a relatively small improvement. A number of analysts have pointed out that if Septembers CPI goes according to the predicted 8.1%, we may see Bitcoin and other cryptocurrencies rally for a while as the market recovers slightly.
EXPECTED CPI IS 8.1% YoY
If we are 8% or lower = PUMP
If it comes to 8.2% or more= DUMP
— Ash WSB ⬢ (@Ashcryptoreal) October 13, 2022
Despite this however, not everyone in the crypto space seems so bullish on the prospect of a lower CPI. Some analysts on the other hand, have pointed out that despite this Septembers overall CPI possibly being lower than Augusts, it may still be possible for September’s Core CPI to be higher.
Some analysts have even predicted for Septembers Core CPI to be at 6.5%, higher than that of Augusts 6.3%. If this does come true, this would mark the highest Core CPI in the past four decades.
Florian Giovannacci, the head of trading for Crypto Prime Brokerage Covario says, “A higher/lower CPI could easily give us a -3%/+3% on equity, and risk-on assets such as cryptocurrency would react instantly with high correlation.“
With Bitcoin trading at a range of $18,000 – $22,400 since the start of September, analysts predict that these CPI results could either cause Bitcoin to plummet to around $17,000 or rally above $22,000.
Bitcoin’s Return To Bullishness
Despite the fact that Bitcoin has been trading at this low range for the past year or so, many analysts and crypto enthusiasts still seem to remain bullish for the cryptocurrency in the long term.
Many investors say that Bitcoin and other cryptocurrencies’ low prices have mostly been due to the macro environment and heavy pressure of the FED’s constant interest rate hikes. Because of this, when the macro economy sees its recovery, cryptocurrencies like Bitcoin will most likely see their prices recover, maybe even return to their all time high prices we saw back in November of 2021.