July 21, 2024

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Bitcoin could still drop to €16,000 due to hyperinflation » Crypto Insiders

Bitcoin could still drop to €16,000 due to hyperinflation » Crypto Insiders

Another month passed, another higher inflation rate. At least in the United States. We will find out what inflation is in the Eurozone on June 22nd. But the US market is leading, and the implications of the new figure could be huge, including for Bitcoin (BTC)

8.6% inflation

He. She Bureau of Labor Statistics yesterday He revealed that the annual inflation rate in the US was 8.6% in May. This is another increase, the April figure was still 8.3%. in real visions daily summary From last night, as Peter Bokfar of Bleakley Consulting Group describes That this would have dire consequences for the financial markets.

The higher figure gives the US central bank an excellent excuse to continue raising interest rates. Little Peter Bokfar Which At least two more announcements of higher interest rates could be made. Then the Fed rate will be at least 2%. It was zero a few months ago. This means that it will be much more difficult to obtain loans, and this should reduce inflation. This process is called quantitative tighteningor in Dutch quantitative stress.

eEurope is a slightly different case. Besides aiming to keep inflation in check, the European Central Bank also aims to prevent southern Europe from going bankrupt. This means that interest rates in Europe cannot go up too much. As a result, there is a good chance that inflation in Europe will remain relatively higher.

Bad news about bitcoin

The biggest problem for cryptocurrencies like Bitcoin at the moment is high inflation. Spotlight on Twitter Crypto whale Last month, that bitcoin wasn’t in a bull market as the Federal Reserve pulled the reins. The central bank is now doing everything it can to bring down inflation.

the opportunity So That’s big Cryptocurrency He will suffer greatly until this policy ends. If we look at the Bitcoin chart, it is noticeable that there may be a bit of support below low of 27,000. If the price drops through this, Bitcoin may be able to find support again with only about 16,000 euros. However, if this price is not Not held, there is a good chance that bitcoins will be worth 12,000 euros or even around 10,000 euros. At the current price, this is a correction between 41% and 63%.

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