In recent days, the cryptocurrency market is behaving too volatile and Bitcoin, the world’s first cryptocurrency is witnessing a major hit. The flagship currency had surpassed $22.1 K before plunging below the range.
At the time of writing, bitcoin is selling at $21,805 after a 1.77% increase over the past 24 hours. Also, the currency has gained more than 10% in the last 7 days.
Meanwhile, as bitcoin is trading above $21,750, which is an important level according to James of Invest Answers, a bitcoin trader and influencer, he believes BTC to be the next $24K. Will reach to. While other industry experts believe that bitcoin will see a pump and dump pattern in the coming days due to the current macroeconomic conditions.
Bitcoin Price To Drop With CPI Data?
The macroeconomic situations are playing a major role in causing such huge volatility in the market. This is the reason for Bitcoin losing its $22k area. On the other hand, the market participants are waiting for CPI (Consumer Price Index) reports which are set to impact Fed’s interest rate hike decisions.
Inflation is also one of the causes of market volatility, so Fed Chairman Jerome Powell is hoping to curb the inflation rate below 2%. This is the reason why the Federal Reserve is expected to increase the interest rate by another 75bps.
On the other hand, according to the CME Fed Watch Tool, there is a 90% chance that the Fed will increase the interest rate by 75 bps. In addition, Fed Chair, Loretta Meister is of the view that the Federal Reserve should increase interest by at least 400 bps to control rising inflation. Currently, the target is 225-250 bps.
Overall, this week will see the release of CPI for the US, and UK, and the PPI (Producer Price Index) for the US.
