2023-08-14 23:10:11
© Reuters. Bitcoin and altcoins are free to rise, says expert
CriptoFácil – In a global economic scenario in constant change, the analyst known as @Negentropic looked into the interaction between the macroeconomic environment and the expected behavior of the market for August.
“Starting with the impact of the latest Federal Reserve rate hike to the latest CPI statistics on Aug. 10, the cryptocurrency world is buzzing with possibilities,” the analyst introduced.
According to @Negentropic, the latest CPI data revealed an inflation rate of 3.2%, slightly below the forecast of 3.3%.
“These numbers show a slight but significant slowdown in inflation, which could affect investor decision-making in the crypto market,” he commented.
The analyst highlights a likely more favorable scenario for Bitcoin thanks to the change in economic expectations.
“The likelihood of a ‘soft landing’ strategy by Powell is growing. Additionally, the expected pause in rate hikes during the September meeting bolsters riskier assets, including the outlook for Bitcoin,” @Negentropic said.
Bitcoin and altcoin analysis
The analyst draws attention to the strong influence of the US dollar on the cryptocurrency market.
“A more relaxed Federal Reserve and milder inflation could lead to a stronger dollar. Historically, a strong dollar has challenged Bitcoin, especially considering the influence of the dollar on liquidity sensitivity.”
The analyst adds that the DXY (US Dollar Index) is approaching a turning point. At this point, he says, if the DXY fails to break above the 103 threshold, its bullish momentum could be dampened. An RSI below 50 could signal a trend change in the market.
“The current macroeconomic environment offers neutrality, allowing Bitcoin and altcoins to chart their own trajectories and this means that bulls are free to take control of the market,” he concluded.
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