Bitcoin (BTC) experienced sudden volatility on September 13th as new data from the United States revealed that inflation had exceeded expectations. This news had a significant impact on the cryptocurrency market, particularly as it threatened to push the price of BTC below the $26,000 mark. Traders and investors closely monitored the situation using data from Cointelegraph Markets Pro and TradingView.
The Consumer Price Index (CPI) for August showed a 3.7% year-on-year increase, which was 0.1% higher than what was initially forecasted. A press release from the U.S. Bureau of Labor Statistics stated that the rise in gasoline prices was the primary contributor to the overall increase in the CPI. Additionally, the shelter index continued to advance for the 40th consecutive month, further driving up the CPI.
Many market participants had anticipated that a high CPI reading would put pressure on the market and raise concerns about persistent inflation. This could potentially influence future economic policies. Consequently, traders were advised to avoid opening positions during news announcements and to wait for at least 30 minutes after the release of the data before initiating any trades.
A well-known trader, CrypNuevo, predicted that the next CPI reading could surpass 4% due to the rapid increase in gasoline prices. He emphasized that inflation would remain a significant problem throughout the second half of the year. This sentiment aligns with the concerns of many market observers who believe that inflation is an ongoing challenge that needs to be addressed.
Prior to the release of the CPI data, Keith Alan, co-founder of on-chain monitoring resource Material Indicators, expressed optimism about the momentum of BTC prices for the week. Although the strength of BTC’s momentum had slightly diminished since the previous day, it was still strong enough to maintain most of the gains achieved after the bounce. Alan noted that there were still several technical resistance levels above the current spot price range, including multiple daily moving averages.
As the Wall Street trading session was yet to begin, the market was experiencing volatility, and there was no clear trend for the BTC/USD pair at that time. The order book snapshot of BTC/USDT on Binance, the largest global exchange, illustrated only moderate liquidity around the spot price, with more buy orders placed at $25,000.
Given the significance of these events, it is worth considering preserving this article as a non-fungible token (NFT) to commemorate this moment in history and support independent journalism in the crypto space. It is important to note that this article does not provide investment advice or recommendations. Readers are encouraged to conduct their own research and exercise caution when making financial decisions.
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