A report on the dynamics of consumer prices in the United States on Tuesday had a negative impact on the Bitcoin rate. He did not justify the hopes of those who expect a manifestation of the first cryptocurrency hedging properties against growing inflation.
Starting from April, when the market fell into a corkscrew, it was not worth it for this — even earlier it was possible to fix the high sensitivity of Bitcoin to macroeconomic data, which brought to the folding Fed of the quantitative softening program. On Tuesday, it was necessary to observe only that economists gave the forecast correctly and it would be possible to see the discharge in the markets with the sale of the dollar and the activation of demand for risk. But they underestimated the scale of prices.
Inflation continues to unwind. In the dry residue — the futures market already lays a 100% chance that the enhancement of the key rate will occur in January 2023. Folding the repurchase program should start earlier. This acts as a risk factor for all risky assets, including BTC, although the correlation of the first cryptocurrency with S & P 500 has decreased to weakly-positive values, as with gold.
Bitcoin did not confirm the status of a digital incarnation of gold. On Tuesday, the precious metallol did not change in price. It may have become a pleasant news for regulators that fear the growing influence of digital assets. In the last report, the Bank of England pointed to the risks of transferring the negative dynamics cryptocurrency to the traditional market due to the «hobbies» of the first institutional investors and corporations. Hardly this script is acceptable.
Market participants continue to see a consequence of such a relationship — on Tuesday, it became aware of the suspension of the BINANCE partnership and Clear Junction. The latter served the transfers to the exchange in pounds and euros. Justification is a recent prescription of the British regulator who did not touch Binance Global directly. What threatens it? As an example, the situation in India can serve as local cryptobiruses complain about difficulties in working with banks from which customers suffer. Platforms have to go on tricks in order to transfers Fiat Crypto Fiat.
It is likely that in the Binance in the fire mode also deal with the consideration of various alternatives so that it does not affect the main business. Again, judging by the dynamics of the turbine token — while the market has not changed its neutral attitude to the news of this kind.
Despite the negative final of Tuesday, technical picture
Therefore, there is a chance that on Wednesday the growth of the dollar will replace a more sustainable weakening. This will give a breather and cryptocurrency market. Bitcoin still has not completed the formation of an upward wave to the upper border of consolidation about $ 37,000. Etherumer is still able to exit above $ 2400, although after delivery $ 2000 it can do it through retest $ 1800 + if the growing impulse will be postponed in the first cryptocurrency.
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