{"id":11505,"date":"2022-06-11T13:16:48","date_gmt":"2022-06-11T13:16:48","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/bitcoin-price-threatens-lowest-weekly-close-since-2020-as-inflation-spooks-markets\/"},"modified":"2022-06-11T13:16:50","modified_gmt":"2022-06-11T13:16:50","slug":"bitcoin-price-threatens-lowest-weekly-close-since-2020-as-inflation-spooks-markets","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/bitcoin-price-threatens-lowest-weekly-close-since-2020-as-inflation-spooks-markets\/","title":{"rendered":"Bitcoin price threatens lowest weekly close since 2020 as inflation spooks markets"},"content":{"rendered":"
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Bitcoin (BTC) dropped to two-week lows on June 11 as the week\u2019s Wall Street trading ended with bears in control.<\/p>\n

BTC\/USD 1-hour candle chart (Bitstamp). Source: TradingView<\/em><\/figcaption><\/figure>\n

U.S. inflation print proves setback<\/h2>\n

Data from Cointelegraph Markets Pro and TradingView followed BTC\/USD as it reached $28,528 on Bitstamp, its lowest since May 28. <\/p>\n

The pair had fallen in step with stock markets on June 10, these finishing the week noticeably down \u2014 the S&P 500 and Nasdaq Composite lost 2.9% and 3.5% respectively.<\/p>\n

This was on the back of surprisingly high inflation data from the United States, which took a turn for the worst in stark contrast to expectations. As Cointelegraph reported, at 8.6%, annual inflation came in at the highest since December 1981.<\/p>\n

Reacting, market commentators were thus firmly on the bearish side when it came to future BTC price action.<\/p>\n

\u201cWhen we drop to $22,000 – $24,000 on Bitcoin they will call for lower Don\u2019t be too greedy when the time comes,\u201d popular Twitter account Crypto Tony told<\/a> followers.<\/p>\n

Filbfilb, co-founder of trading suite Decentrader, meanwhile contrasted<\/a> the current environment with the March 2020 COVID-19 crash. This year\u2019s slow bleed, he argued, was if anything more painful than the \u201ccar crash\u201d price declines of the time that briefly took Bitcoin to $3,600.<\/p>\n

\u201cInflation hasn’t peaked, and neither has Bitcoin,\u201d MicroStrategy CEO Michael Saylor offered in a more hopeful angle<\/a> after the data print.<\/p>\n

\u201cIn the current macro backdrop it doesn’t matter how many charts are showing confluence that we are reaching historically oversold levels,\u201d popular Twitter account PlanC countered<\/a>. <\/p>\n

\u201cAs long as Bitcoin remains correlated to risk on assets I don’t see a significant trend reversal anytime soon.\u201d<\/p><\/blockquote>\n

If it were to end the week at current levels or any below $29,450, meanwhile, BTC\/USD would be threatening its lowest weekly close since December 2020.<\/p>\n

BTC\/USD 1-week candle chart (Bitstamp). Source: TradingView<\/em><\/figcaption><\/figure>\n

Doubts over rate hikes emerge<\/h2>\n

Looking ahead, forthcoming decisions on rate hikes in response to inflation were primed to be the major focus of the coming week.<\/p>\n

Related: BTC price snaps its longest losing streak in history \u2014 5 things to know in Bitcoin this week<\/em><\/strong><\/p>\n

The Federal Reserve\u2019s Federal Open Markets Committee (FOMC) minutes, due for the meeting on June 14-15, will provide clues on how aggressive policymakers plan to be when it comes to stemming price rises.<\/p>\n

\u201cI think that at some point, the market will realize that inflation is not going away soon and that rates will still be relatively low,\u201d Twitter account Daan Crypto Trades argued<\/a>.<\/p>\n

It added that gold could provide an early indication of that \u201cnew old\u201d trend by rising from its current trading channel.<\/p>\n

\u201c$GOLD could be the leading factor in such a shift. Closely watching that. Right now, we\u2019re still in the process of baking in the bad factors,\u201d a post on the day read.<\/p>\n

XAU\/USD 1-day candle chart. Source: TradingView<\/em><\/figcaption><\/figure>\n

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<\/div>\n