Bitcoin and other cryptocurrencies fell back on Thursday, giving up gains seen on Wednesday after the release of key US inflation data. At least one analyst sees the price dynamics as a bearish sign.
The price of Bitcoin has fallen less than 1% in the past 24 hours to $27,450. The biggest digital asset jumped to near $28,500 on Wednesday after the release of the US Consumer Price Index (CPI), but has since fallen back below where it traded before the CPI data sent the cryptos higher. Bitcoin continues to…
Bitcoin
and other cryptocurrencies fell back on Thursday, giving up gains seen on Wednesday after the release of key US inflation data. At least one analyst sees the price dynamics as a bearish sign.
The price of Bitcoin has fallen less than 1% in the past 24 hours to $27,450. The biggest digital asset jumped to near $28,500 on Wednesday after the release of the US Consumer Price Index (CPI), but has since fallen back below where it traded before the CPI data sent the cryptos higher. Bitcoin continues to languish below the psychologically important $30,000 zone, which it breached last month for the first time since June 2022, but failed to regain in May.
“Price dynamics are becoming increasingly bearish: the formation of a series of declining highs, a consolidation below the 50-day moving average and a breach of the April lows suggest that sellers are dominating,” said Alex Kuptsikevich, analyst at broker FxPro.
In theory, Bitcoin should have held on or even extended gains after data showed signs that inflation has cooled. That’s what happened with technology stocks, with the technology-heavy ones
Nasdaq Composite
hit
Dow Jones Industrial Average
and
S&P 500
on Wednesday and should do better on Thursday.
CPI data confirmed expectations that the Federal Reserve may not continue to raise interest rates to tame inflation, which should support crypto and tech stocks, as both are risk-sensitive assets that see subdued demand in a higher interest rate environment. In a worrying development, a risk-on macroeconomic catalyst failed to push Bitcoin back above technical levels – leaving cryptos vulnerable to the release of more inflation data coming later Thursday in the form of the producer price index (PPI).
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Beyond Bitcoin,
Ether
— the second largest crypto — fell 1% to $1,820. Smaller cryptos or altcoins were more mixed, with
Cardano
up 2% but
Polygon
miss 1%. Memecoins were little changed, med
Dogecoin
down less than 1% and
Shiba Inu
hovering around flat.
Write to Jack Denton at [email protected]
