As outlined by Cointelegraph, there is a forecast for BTC price to reach $31K, with analysts suggesting that this surge is driven by ‘disinflation’. Currently, the BTC price is coiling up below $31,000, preparing for what can be termed as a “major shift”.
Unexpectedly lower numbers from the United States Producer Price Index (PPI) have resulted in rapidly decreasing inflation forecasts, providing a conducive environment for BTC price growth. However, market participants seem resolute in their belief of a subsequent hike in interest rates by the Federal Reserve, despite the underlying CPI and PPI data.
On the one hand, this inflation-defying trajectory has contributed to a spike in asset prices. As the Senior Market Analyst at Cubic Analytics noted, one cannot ignore the undeniable link between declining inflation and the evident BTC price rebound throughout this year. With equities soaring and Bitcoin up by more than 80%, there’s evidence enough that the traction has been largely from disinflation.
Yet, there are contrasting views towards Bitcoin. Some analysts observe a persistent optimism surrounding BTC. Europe likely seeing its first Bitcoin spot exchange-traded fund (ETF) by the end of this year may be a contributing factor to this positivity.
However, not everyone shares the same sentiment. Market trends, while remaining stubbornly in place, suggest a return to normalcy in the foreseeable future. Some note a triangle formation hovering beneath the “key” $31,000 resistance level.
Meanwhile, Celsius Network, the crypto lender, tops the headlines being fined a hefty $4.7 billion by the US Federal Trade Commission. The regulator claims Celsius allegedly misappropriated over $4 billion in consumer assets and made unsecured loans worth $1.2 billion. Celsius and its founders firmly deny the accusations as the case moves forward.
To wrap up, the market is a mixed bag of sentiments. While declining inflation may serve as a boost for BTC prices, there are opposing views based on the market patterns and expected moves from the Federal Reserve. The impending launch of Europe’s first ETF could also affect market sentiment. As for Celsius, it’s a bitter testament to the regulatory hurdles that continue to plague the crypto industry. The information presented doesn’t constitute investment advice, and readers should conduct their independent research.
Source: Cointelegraph
