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Bitcoin price threatens lowest weekly close since 2020 as inflation spooks markets

Bitcoin (BTC) fell to a two-week low on June 11 as the week’s trading on Wall Street ended with bears under control.

BTC/USD 1 hour candle chart (Bitstamp). Source: Trading View

US inflation down

Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it hit $28,528 on Bitstamp, its lowest level since May 28.

The pair had fallen in line with the stock markets on June 10, which ended the week sharply lower – the S&P 500 and the Nasdaq Composite lost 2.9% and 3.5% respectively.

This was due to surprisingly strong inflation data from the United States, which deteriorated contrary to expectations. As Cointelegraph reported, at 8.6%, annual inflation hit its highest level since December 1981.

Reacting, market commentators were therefore firmly on the bearish side when it comes to the future price action of BTC.

“When we drop to $22,000-$24,000 on Bitcoin, they’ll be asking for a drop. Don’t get too greedy when the time comes,” popular Crypto Tony Twitter account Told followers.

Filbfilb, co-founder of the Decentrader trading suite, meanwhile contrast the current environment with the COVID-19 crash of March 2020. This year’s slow bleeding, he argued, was more painful than the then “car crash” price drop that briefly raised Bitcoin to $3,600.

“Inflation hasn’t peaked, and neither has Bitcoin,” MicroStrategy CEO Michael Saylor said in a more hopeful angle after printing the data.

“In the current macro environment, no matter how many charts showing confluence we are hitting historically oversold levels,” popular Twitter account PlanC versus.

“As long as Bitcoin remains correlated to asset risk, I don’t see a significant trend reversal any time soon.”

If it were to end the week at current levels or below $29,450, BTC/USD would threaten its lowest weekly close since December 2020.

BTC/USD 1 week candle chart (Bitstamp). Source: Trading View

Doubts about rate hikes emerge

Looking ahead, upcoming decisions on rate hikes in response to inflation were expected to be the main focus in the week ahead.

Related: BTC Price Records Its Longest Losing Streak In History – 5 Things To Know About Bitcoin This Week

Minutes from the Federal Reserve’s Federal Open Markets Committee (FOMC), scheduled for the June 14-15 meeting, will provide clues as to how aggressive policymakers are when it comes to stemming the rise prices.

“I think at some point the market will realize that inflation is not going away anytime soon and rates will still be relatively low,” Daan Crypto Trades Twitter account argued.

He added that gold could provide an early indication of this “new old” trend by breaking out of its current trading channel.

“$GOLD could be the main factor for such a change. Watch this closely. Right now, we are still integrating the wrong factors,” reads a post for the day.

XAU/USD 1-day candle chart. Source: Trading View

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