Taking into consideration risk associated with asset price movements after macro decisions, Bitcoin reaction to inflation data is highly anticipated. Bitcoin (BTC) dropped significantly following the inflation data release on Thursday. The U.S. annual inflation in September is higher than expected, due to which stock futures fell. In this context, crypto influencers believe it would not be wise to take a position immediately after the data release.
Bitcoin Reaction To Inflation Data
The U.S. reported an annual inflation of 8.2% in September. Inflation rose 0.4% in September, which is more than expected, as per the latest U.S. Bureau of Labor Statistics consumer price index (CPI) data. The data points to an important measurement of the country’s inflation levels. Based on the CPI data, the U.S. Fed makes monetary policy decisions. Meanwhile, BTC fell sharply due to the higher than expected inflation figures. On an hourly basis, the top cryptocurrency is down 1.59%.
As of writing, BTC price stands at $18,401, down 3.30% in the last 24 hours, according to price tracking platform CoinMarketCap. Not just Bitcoin, but also other cryptocurrencies are trading in the red following the CPI data release. The drop makes it even worse for the weekly numbers for Bitcoin, which now stand at a drop of around 9%. This adverse reaction could be yet another disappointing sign for BTC investors who are awaiting a bull run.
Meanwhile, crypto influencers believe it is best to wait for a day before taking a position in Bitcoin in the wake of the inflation data release. Crypto Rover, an influencer, said it is safe to play the wait and watch game. He emphasized that it could be a risky bet to invest in the current scenario, especially with the important macro data release the CPI. Also, Alex Kruger, a crypto trader, feels the weekend could see a huge Bitcoin price drop. He said that the asset could see a new low in the current calendar year. So far this year, the BTC low has been around $18,200.
“High odds BTC will see new year to date lows over the weekend, I would not be a buyer.”
Best Time To Buy Bitcoin
Going by this logic, BTC could possibly go below the $18,000 mark. This could be an important stage for the market as a new low could mean extremely negative market sentiment. In this context, traders could weigh their options on the best time to buy Bitcoin. Perhaps big investors would grab the chance to buy BTC anywhere around $17,500 for short term purpose.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.