The inflation rates are about to be announced in a short while from now and the crypto markets are responding extremely negative. It’s been a couple of months that the markets are dropping heavily as the rates have been surging to a 40-year high. While some hope for better rates, some believe it is a good opportunity to lighten their positions and re-enter after some time probably after a couple of hours.
In such strained conditions, a fake report of 10.2% makes huge rounds and the market begins to move sideways by dropping by nearly 5%. However, The Bureau of Labor Statistics confirmed the rates to be fake that assisted the BTC & ETH prices to recover slightly. However, the inflation rates are expected to be raised by 75 basis points to hit 8.8%. Therefore, the entire crypto markets may be shaken up or may also lead to a huge plunge recording the bottoms.
Charlie Bilello, the founder and CEO of Compound Capital Advisors ran a poll to know the actual numbers that may point out the sentiments.
According to the survey, nearly 45% of them believe the rates to be above 8.8% while 42% believe it could be below these rates. Therefore, the rounds of the increased rates have been circulated within the space which has bought forth a sense of FUD within the space. While many are just eagerly waiting for the confirmation so that they can pull off their holdings.
Therefore, if the rates come out higher than 8.6% then the bears may be strengthened while lower rates may grant the bulls to take over. However, if the rates are increased and anything above 8.8% will drag Bitcoin close to $15,750 to $15,550 levels.
Collectively, the BTC price is currently anchored around $19,500 to $19,800 levels and hence the asset may withness increased volatility after the rates are out. However, the possibility of a remarkable drop emerges leaving no room for the bulls ahead.
Written by: Sahana Vibhute