Bitcoin Holds Breath Ahead of CPI
Bitcoin remained under pressure on Tuesday (July 14th), as investors refrained from speculative assets amid escalating US-Iran tensions and inflation concerns. Currently, Bitcoin is trading around US$62,556, with a daily range of US$61,794–US$63,063.
Pressure on Bitcoin stems from global risk-off sentiment. The conflict in the Strait of Hormuz has rekindled oil prices, raising market concerns about rising energy inflation. This is unfavorable for crypto because if inflation is high, the Fed could potentially maintain high interest rates or even raise them again.
Interest rate expectations have come under increasing scrutiny after Fed Governor Christopher Waller stated that a near-term rate hike should be considered if core inflation flares up again. The market is also awaiting the June US CPI data, which is expected to show headline inflation starting to level off, but core inflation remains above the Fed's 2% target.
In addition to the CPI, investors are also awaiting Fed Chairman Kevin Warsh's first testimony before Congress. The market doesn't expect Warsh to provide overly clear direction, as he has so far tended to avoid forward guidance. However, any comments on inflation and interest rates could still move the dollar, yields, and riskier assets like Bitcoin.
From an institutional perspective, spot Bitcoin ETF fund flows remain a major concern. SoSoValue data shows that ETF fund movements are closely monitored by the market, as inflows and outflows are indicators of large investor interest in Bitcoin. If outflows continue, selling pressure on BTC could persist.
Altcoins are trading mixed, tending to be weak. Ethereum is hovering around US$1,624.95, XRP at US$1,059, Solana at US$77.97, BNB at US$569.28, Cardano at US$0.1583, and Dogecoin at US$0.0720. In the short term, Bitcoin needs to break through the US$63,500–US$64,000 area to open up a rebound. If it fails to hold above US$61,800, pressure could extend to the psychologically important US$60,000 area. (arl)
Source: Newsmaker.id
