Bitcoin holds $24K as USD taps 3-week lows on eurozone inflation report

Bitcoin (BTC) sought to pin $24,000 as help earlier than the July 29 Wall Avenue open as contemporary inflation information sparked worries for the euro.

BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

Eurozone inflation estimate reveals no peak

Information from Cointelegraph Markets Pro and TradingView confirmed BTC/USD sustaining most of its newest good points after spiking to just about $24,500 in a single day. 

The day’s macro motion delivered painful information for the European Financial Space (EEA), as the most recent estimates for euro inflation got here in at 8.9% for July — nonetheless climbing from June’s 8.6%.

“Wanting on the major elements of euro space inflation, power is anticipated to have the best annual price in July (39.7%, in contrast with 42.0% in June), adopted by meals, alcohol & tobacco (9.8%, in contrast with 8.9% in June), non-energy industrial items (4.5%, in contrast with 4.3% in June) and companies (3.7%, in contrast with 3.4% in June),” an accompanying report compiled by Eurostat learn.

The information supplied a curious distinction in some European Union member states, the place development outperformed expectations regardless of the best inflation figures within the historical past of the euro’s existence. This led some commentators to suspect that every one was not what it appeared.

The European Quandary, nonetheless, buoyed the US greenback, which had been retreating from its newest two-decade highs towards a basket of buying and selling companion currencies via July.

The U.S. greenback index (DXY) touched 105.54 on the day, its lowest studying since July 5, earlier than rebounding to close 106 on the time of writing. 

A key inverse correlation for crypto markets, extra DXY advances might sign contemporary stress on BTC value motion.

“DXY simply dropped to the earlier excessive now help and appears to be holding. A doable bounce right here to 107, 108 earlier than additional drop,” well-liked buying and selling account Mikybull Crypto predicted in a contemporary Twitter replace, including that this situation would entail a pullback to $22,800 for BTC/USD.

U.S. greenback index (DXY) 1-day candle chart. Supply: TradingView


In an arguably unexpected bullish turn, in the meantime, Arthur Hayes, ex-CEO of derivatives platform BitMEX, implied {that a} weaker greenback was now imminent.

Associated: Bitcoin bull run ‘getting interesting’ as BTC price hits 6-week high

Following the Federal Reserve’s newest key rate hike, Hayes acknowledged that the central financial institution’s return to accommodative financial coverage and extra impartial charges had now begun.

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Fed Chair Jerome Powell, he wrote on July 28, wouldn’t be growing hikes any longer, one thing he referred to as the “Powell pivot.”

The idea, as Cointelegraph not too long ago reported, revolves across the Fed having little room left to maneuver because of price hikes growing the probability of a deeper recession within the U.S. economic system.

The newest GDP information launched this week had already positioned the U.S. in a technical recession thanks to 2 straight quarters of destructive numbers.

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