Bitcoin (BTC) and Crypto Market Expected to Receive Major Blow Soon: Details
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Crypto journalist and blogger Colin Wu stated that within 12 hours, US Consumer Price Index (CPI) is to be published. He expects that the expected CPI drop and the approaching Binance court hearing will strike the crypto market sharply.
As a source, he cited the @GreeksLive analytics Twitter handle, who shared more details on the upcoming inflation report release.
CPI expected to push Bitcoin down
The tweet states that analysts are expecting the retail inflation index to decline to 4.1%. This may have a short-term effect on the Bitcoin price, @GreeksLive says, as the previous CPI reports this year did. While the inflation on all metrics surged to 9% a year ago, in March this year it came down to 5%.
The analyst adds that the upcoming Binance hearing is making the crypto community very much concerned as these events are likely to affect the entire cryptocurrency market. @GreeksLive stated that as these two major events are due, the daily option IV (Implied Volatility) has increased to the level of 50%, while less than a week ago it sat at less than 30%. IV usually goes up during bearish markets.
Besides, the coming CPI will also show whether the Fed Reserve will continue its rate hiking policy.
The aforementioned account also shared that an anonymous whale has bought almost 5,000 BTC OTM daily call options as he is, apparently, bullish long-term. This volume of options is around 40% of the whole daily volume.
In the next 12 hours, the US May CPI data will be released, the market is expected to drop sharply, and the Binance hearing will be held; the concentration of these two big events has pushed the daily option IV up sharply, which is now back above 50% , nearly doubling compared to…
— Wu Blockchain (@WuBlockchain) June 13, 2023
Godfrey BenjaminBitcoin begins to recover
After a sharp drop of nearly 4% on Saturday after the word was spread about the SEC filing charges against Binance and Coinbase, the “mass hysteria has settled down”, on-chain data aggregator Santiment has tweeted. So now, until the events related to the lawsuits begin to develop further, the company’s analysts expect the prices in the crypto market to begin reviving to the previous levels.
The flagship cryptocurrency Bitcoin has already regained 2.71% since the fall and is now changing hands at $26,202 on the Bitstamp exchange.
👨⚖️ With traders still very much aware of the #SEC going after #Binance and #Coinbase, the mass hysteria has at least settled down. Until the next developments with the lawsuits, we could see some gradual rising of prices back to pre-crash levels. https://t.co/Za7tchgeUx pic.twitter.com/BSZEHrjQNP
— Santiment (@santimentfeed) June 12, 2023
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