Bitcoin, altcoins sell-off on record-high inflation, but traders still expect BTC to consolidate
Global financial markets once again find themselves trending lower on June 10 after the Consumer Price Index (CPI) came in at a blistering 8.6% year-over-year increase, the highest print since 1981.
The hotter-than-expected CPI print resulted in a collapse of the $30,000 support and Bitcoin (BTC) price sold off to a daily low of $28,852 before dip buyers managed to bid the price back above $29,000.
Here’s what several analysts in the market are saying about the outlook for Bitcoin moving forward since there appears to be little relief on the inflation front and the Federal Reserve is still determined to raise interest rates.
The effect of the high CPI print on two benchmarks of financial markets, the dollar index (DXY) and the S&P 500 (SPX), was touched on by il Capo of Crypto, who posted the following charts noting that “After CPI results, #DXY continues its pump and #SPX keeps free-falling.”
Market analyst Kevin Svenson also said that the Fed's inability to curb inflation is likely to translate to choppy price action for the next year.
With inflation, at 8.6% that means increased rate hikes are likely. $DXY is going parabolic. #BTC and most asset classes are likely going to have to deal with lots of ranging at the lows. Sideways for a year possibly. Instant recovery is not likely.
Should the price of BTC continue to trend lower, crypto trader and pseudonymous Twitter user Altcoin Sherpa says trading below $28,000 is possible.
Altcoin Sherpa said,
Related: Bitcoin price falls under $29.5K after 'unexpected' 40-year high US inflation
Insight into what it would take to avoid a pullback to the support at $28,000 was provided by market analyst and pseudonymous Twitter user CrediBULL Crypto, who posted the following chart showing
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