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Bitcoin Faces Crucial US Economic Tests This Week

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Bitcoin (BTC) faces a big week ahead as various key macroeconomic events are scheduled on the US calendar. The impact of these data releases on the crypto market has regained importance after a period of diminishing influence in the second half of 2023.

Crypto traders and investors should prepare for potential volatility as the week starts, with multiple impactful events lined up on the economic calendar.

Bitcoin Braces for US Economic Data: What to Watch

While the week’s major US economic reports calendar is packed with events, those that could impact Bitcoin and digital assets make the bulk of it. Among them is Donald Trump’s interview with Elon Musk.

Trumps Interview With Musk

Trump will engage Musk on Monday, August 12 via X spaces at 8 p.m. ET. The interview is expected to be unscripted and open to all topics, with Musk inviting everyone to submit questions they would like to see discussed. Musk is pro-Trump, with reports that the CEO of X created a Super PAC focused on supporting candidates who favor a meritocracy and personal freedom.

“Am going to do some system scaling tests tonight & tomorrow in advance of the conversation with Donald Trump,” Musk said on Sunday.

This comment is made given the platform’s spotty performance last year during an interview with Florida Governor Ron DeSantis. Indeed, this interview could have implications for Bitcoin and crypto after Trump’s bullish assertions during the Nashville conference. Both Trump and Musk are pro-crypto, which means the subject will likely spring up in the interview.

Core PPI (Wholesale Inflation)

On Tuesday, the US Bureau of Labor Statistics (BLS) will report July’s Core Producer Price Index (PPI). This data determines price increases at the producer level and influences financial markets by measuring inflation at the wholesale level. Specifically, increases in PPI indicate increases in production costs.

These increases could lead to growing energy and hardware costs requisite for mining and processing cryptocurrencies. A higher core PPI on August 13 could negatively affect Bitcoin and crypto.

Economists forecast a 2.2% year-over-year increase, four-tenths of a percentage point less than in June. The core PPI, which excludes volatile food and energy prices, is seen rising 2.7%, compared with 3% previously.

US CPI

The BLS is also scheduled to release the July Consumer Price Index (CPI) this week. This data measures the price increases in consumer goods and services. While the consensus call is for the CPI to increase 2.9% year over year, the core CPI is expected to rise by 3.2%, with both estimates being one-tenth of a percentage point less than the June figures.

An increase in the CPI may decrease consumers’ purchasing power. This could negatively affect Bitcoin and crypto markets because consumers may tend to spend less when purchasing power decreases.

Read more: How to Protect Yourself From Inflation Using Cryptocurrency

From another perspective, the decreased purchasing power of fiat currencies could lead to more people turning to alternative assets like crypto. Here, they see it as a means to protect their wealth. In this scenario, an increase in inflation, as indicated by the CPI, would potentially drive up the demand for Bitcoin and crypto in general, ultimately driving up their prices.

Initial Jobs Claims

The Census Bureau will report on the US jobs claims on Thursday, detailing July’s retail and food services sales data. Economists predict a 0.3% month-over-month increase relative to a flat reading in June.

Retail sales could gain 0.1% minus the sale of autos, which is three-tenths of a percentage point less than previously. Amid recession fears that have kept investors spooked recently, the market hopes to see continued resilience in consumer spending.

“Bitcoin and Ethereum tend to underperform during periods that resemble or approach a recession in the United States. Additionally, investors are reducing their positions as prices have fallen below the average entry point for ETF investors, which is approximately $60,000,” Markus Thielen, Founder and CEO at 10x Research, recently told BeInCrypto.

Consumer Sentiment Survey

Markets also brace for the University of Michigan’s August consumer Sentiment survey, which will be released on Friday. This data reflects the gap between the US economy’s continued strength and how households feel about their financial situation.

In July, consumers’ expectations of the year ahead inflation was 2.9%, which signified a near a 3-and-a-half-year low. Expectations for the August 16 release are for a 67.5 reading, about one point higher than previously.

Noteworthy, consumer sentiment is much more sensitive to inflation, while consumer confidence is more sensitive to the labor market. If the data shows consumers still struggle with inflation and high interest rates while worrying more about their jobs, crypto could react differently.

Ultimately, the relationship between crypto and US macroeconomics is not always straightforward. The market reacts to data releases in unexpected ways, which is determined by what transpires in the days leading up to the data release date.

For instance, traders could front-run the data if markets anticipate an increase for specific data. This means the immediate reaction in crypto prices may be different than expected.

Bitcoin Price Outlook

Meanwhile, Bitcoin is back in the $58,000 range after topping out at $61,858 on Sunday. While this volatility could be attributed to low trading volumes on the weekend, this week’s US economic data also has traders and investors on alert.

As BTC retraces to the demand zone, this order block could provide a good buying opportunity. However, this is contingent on the $55,313 level holding as a support floor on the one-day timeframe. Momentum indicators such as the Relative Strength Index (RSI) suggest a lack of conviction among bulls.

Perhaps positive developments from the US macroeconomic front could inspire bullish optimism. This could drive Bitcoin price back up and, with it, the broader cryptocurrency market.

Read more: How To Buy Bitcoin (BTC) and Everything You Need To Know

Bitcoin Price Performance
BTC/USDT 1D Chart. Source: TradingView

However, if the $55,313 threshold breaks as support, and the price closes below it on the daily timeframe, Bitcoin could roll over lower, potentially extending for a liquidity sweep below $52,398.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Bitcoin Could Serve as Inflation Hedge or Tech Stock, Say Experts

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Bitcoin may be a useful hedge against inflation in the near future as market uncertainty is growing. In the long run, it may also be useful to envision Bitcoin differently, treating it as a barometer for the tech industry.

Standard Chartered’s Head of Digital Assets Research and WeFi’s Head of Growth both shared exclusive comments with BeInCrypto regarding this topic.

Bitcoin: Inflation Hedge or Magnificent 7 Candidate?

Since the early days of the crypto space, investors have been using it as a hedge against inflation. However, it’s only recently that institutional investors are beginning to treat it the same way. According to Geoff Kendrick, Head of Digital Assets Research at Standard Chartered, the trend of Bitcoin as an inflation hedge is increasing.

Still, this view may be too narrow in a few ways. Since the Bitcoin ETFs were first approved, BTC has been increasingly well-integrated with traditional finance. Kendrick noted this, saying that it is highly correlated with the NASDAQ in the short term. He claimed that Bitcoin might represent more than an inflation hedge, instead serving as an ersatz tech stock:

“BTC may be better viewed as a tech stock than as a hedge against TradFi issues. If we create a hypothetical index where we add BTC to the ‘Magnificent 7’ tech stocks, and remove Tesla, We find that our index, ‘Mag 7B’, has both higher returns and lower volatility than Mag 7,” Kendrick said in an exclusive interview with BeInCrypto.

This comparison is particularly apt for a few reasons. Tesla’s stock price is heavily entangled with Bitcoin, but it’s also been dropping due to political controversies. If Bitcoin were to replace Tesla’s position in the Magnificent 7, it may be a welcome addition. Of course, there is currently no mechanism to cleanly treat Bitcoin as a similar type of product. That could change.

However, Bitcoin’s role as an inflation hedge might be more immediately relevant. As Trump’s Liberation Day approaches, the crypto markets are becoming increasingly nervous about new US tariffs. As Agne Linge, Head of Growth at WeFi, said in an exclusive interview, these fears are impacting all risk-on assets, Bitcoin included.

“Crypto markets are closely tracking investor sentiment ahead of Trump’s…tariff announcement, with growing concerns over the potential economic impact. Bitcoin’s increasing correlation with traditional markets has amplified its exposure to broader macroeconomic trends, making it more sensitive to the risk-off sentiment that has affected equity markets,” Linge claimed.

She went on to state that US economic uncertainty was at record levels, surpassing both the 2008 financial crisis and the pandemic in April 2020. In these circumstances, recent inflation indicators are showing expected rates above expectations.

In such an environment, the crypto market is sure to take a hit, but traditional finance and the dollar is also in great jeopardy. All that is to say, Bitcoin is likely to be a solid inflation hedge in the near future. Even if it falls dramatically, it has worldwide appeal and the ability to rebound.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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$500 Trillion Bitcoin? Saylor’s Bold Prediction Shakes the Market!

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Michael Saylor, one of the most outspoken supporters of Bitcoin, is back and bolder than ever. In a recent statement, the former MicroStrategy CEO predicted that the alpha coin will potentially hit a $500 trillion market cap. Saylor’s bold prediction for the world’s top digital asset comes during the intensified push for a Strategic Bitcoin Reserve (SBR). 

In his latest pro-crypto statement, Saylor argued that the digital asset will “demonetize gold”, then it will demonetize real estate, which he calculated as 10x more than gold. To summarize his argument, Saylor further states that Bitcoin will demonetize “all long-term store of value”.

Push For SBR Gains Ground

Saylor’s latest statement comes as Congress intensifies its efforts to build the country’s BTC holdings. United States President Donald Trump formalized the plans to build crypto holdings through an executive order to establish a strategic crypto reserve that will initially include $17 billion worth of BTC that the country currently controls.

According to the president, additional acquisitions of cryptocurrency are allowed, provided these are done through “budget-neutral” approaches. Senator Cynthia Lummis initially proposed in the Senate, through the Bitcoin Act, the plan to create a Bitcoin reserve. Under the proposal, the administration can purchase 1 million Bitcoin to complement the reserve.

Saylor Explains Crypto’s Role During Blockchain Summit

Saylor’s latest prediction on Bitcoin was made during his appearance at the DC Blockchain Summit. He was joined on stage by Jason Les, the CEO of Rito Platforms, and Lummis, the principal author of the Bitcoin Act.

BTC is now trading at $83,238. Chart: TradingView

During the program, Saylor was asked about America’s need for Bitcoin. Saylor answered with conviction, saying the rising importance of BTC is inevitable and will happen with the US’ participation. During his talk, he shared that Bitcoin, created by the enigmatic Satoshi Nakamoto, is unstoppable. 

Image: Gemini Imagen

Saylor added that the premier digital asset is the next stage in money’s evolution, and it’s currently absorbing value from traditional assets like currency reserves and real estate.

Saylor Predicts Top Coin Will Reach $500 Trillion In Market Cap

During his talk, Saylor predicted that BTC will eventually grow from $2 billion to $20 billion, which can hit $200 billion and beyond. Finally, he thinks the asset can achieve a $500 trillion market capitalization, reflecting more than 29,000% increase from its current market capitalization of $1.67 trillion.

Saylor’s recent bold prediction aligns with his firm conviction and support for the asset. He argues that Bitcoin’s unique features, its decentralized nature and fixed supply, make it a perfect hedge against economic uncertainties like inflation.

Featured image from Gemini Imagen, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.





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Big Bitcoin Buy Coming? Saylor Drops a Hint as Strategy Shifts

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A top executive of Strategy, formerly MicroStrategy, posted a cryptic post on X, fueling speculation that the company might be positioning itself to make another Bitcoin acquisition soon.

Strategy Executive Chairman Michael Saylor suggested in an X post that the company would purchase additional Bitcoins to boost its current BTC holding of $42 billion.

Saylor To Buy More Bitcoin 

In a typical Saylor fashion, the Strategy top honcho disclosed the company’s BTC investment portfolio tracker, an indicator that the company is planning an upcoming Bitcoin acquisition.

“Needs even more Orange,” Saylor said in the post, referring to the orange circles in the graph (below), which represents the company’s Bitcoin purchases since September 2020.

Once again, Saylor’s post intrigued the crypto community because many believe the graph conveys a message that Strategy will buy more BTC soon.

Strategy Stockpile: Over $40B BTC

According to Saylor, Strategy’s Bitcoin holding now stands at more than $42 billion. Despite the company’s already huge investment in BTC, it seems the company will continue to increase its holdings, believing in the value of crypto.

Strategy has made great strides in building its BTC reserve from its initial Bitcoin purchase of 21,454 coins worth $250 million in August 2020.

On March 17, the company announced its latest acquisition of 130 Bitcoins for about $10.7 million in cash, with an average price of around $82,981 per coin.

BTC is now trading at $84,287. Chart: TradingView

Meanwhile, Onchain Lens reported on Sunday that Strategy moved a considerable number of its coins to new addresses.

“Strategy (formerly MicroStrategy) transferred 7,383.25 $BTC worth $612.92M to three new addresses on March 30,” Onchain Lens said in a post.

Analysts believe the company is influencing the crypto market to strengthen its position, as its chairman has consistently urged others never to sell their Bitcoin.

Fueling BTC Adoption

Many market observers argued that Saylor’s BTC investment strategy might have driven crypto adoption. Ironically, Saylor was pessimistic about Bitcoin’s future in 2013, predicting that the flagship crypto would fail.

However, in 2020, Saylor became one of Bitcoin’s staunch advocates and has now been preaching the merits of the firstborn crypto, urging companies to acquire Bitcoin.

For example, Visa planned to let its customers spend digital assets directly at 70 million merchants. At the same time, financial institutions such as JPMorgan and Morgan Stanley have begun offering crypto investments to wealthy clients and institutional investors.

Featured image from Times Now, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.





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