A recent tweet by a prominent analyst, Michaël van de Poppe, suggests that the US inflation is likely to persist, resulting in a correction in the price of Bitcoin before the next Federal Open Market Committee (FOMC) meeting. Poppe added that while the consumer price index (CPI) may be lower, some figures indicate that inflation will continue longer than expected.
The analyst further argued that the Producer Price Index (PPI) report expected to be released today would confirm the trend, leading to a shift in market sentiment toward a potential interest rate hike of 25 or 50 basis points.
In a recent poll, crypto lawyer John Deaton asked the crypto community their view about what the US reserve bank would do next amid the crisis in the banking sector and numerous bank runs. While 44% of the respondents bet on a pause, many responders believe there would be a hike in interest rates.
Given the turbulence in the US banking industry following the failure of three prominent banks, the crypto market volume increased by over $100 billion in the last 24 hours, according to CoinMarketCap data. Bitcoin (BTC) touched a nine-month high of $26,500 on Tuesday after falling below $19k the previous week.
A leading data analytics firm, CryptoQuant, blamed the previous week’s sudden crash on miners, saying they reduced their reserves, putting extra pressure on Bitcoin. Ethereum (ETH), BTC’s main rival, also lost substantial value, falling to about $1,370. However, ETH has also recovered from the crash, currently trading at $1,679.
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Source: Cryptocurrency - investing.com
