Bitcoin Price Prediction When US Inflation Rate Data Is Announced – Will BTC Start Moving Up Now?

by James · May 12, 2023

As the US inflation rates have been released, the crypto community is anxiously awaiting the impact on the Bitcoin market.

With the current state of the global economy, investors have turned to Bitcoin as a hedge against inflation.

The announcement of the inflation rate is expected to have a significant effect on Bitcoin’s price.

In this Bitcoin price prediction, we will examine the potential impact of the inflation rate on Bitcoin’s price and make predictions about whether the cryptocurrency will start to rise.

Table of Contents

US consumer price index (CPI) figures for May show inflation concerns persist

The US consumer price index (CPI) figures for May are out, showing a monthly increase of 0.4% in both the overall CPI and the core CPI, which excludes food and energy prices.

On an annual basis, the overall CPI rose by 5.0%, while the core CPI increased by 4.0%.

These figures were in line with expectations and indicate that inflation remains a concern in the US.

As a result, investors and analysts are closely watching the impact of these numbers on the US dollar and the cryptocurrency market, especially Bitcoin.

Fear, Uncertainty and Doubt (FUD) about US government wallet sales is causing cryptocurrency dumping

The cryptocurrency market experienced a sudden dump as a result of fear, uncertainty and doubt (FUD) surrounding the alleged sale of US government cryptocurrency wallets.

The rumor created panic among investors, which led to a significant sell-off in the market.

Although the rumors were eventually proven to be false, the damage was already done, with many traders losing money due to the FUD-induced market crash.

Recently, there have been reports of wallets linked to US government law enforcement seizures, including those from the infamous Silk Road marketplace, transferring Bitcoin.

This has raised concerns that the US government is preparing to sell some or all of the Bitcoin stashes seized during these operations.

Blockchain analytics provider Glassnode reported on March 8 that the government’s estimated wallet balance was 144,500 BTC before the recent move.

However, this balance has since dropped to 125,600 BTC as 18,860 coins worth around $418 million were transferred.

The Mempool tracker suggests that up to 40,000 BTC may have been involved in the transaction, with roughly 25% going to Coinbase.

Glassnode confirmed that an estimated 9,861 BTC worth around $219 million were among those sent to Coinbase, and these were allegedly seized from the Silk Road hacker.

As the Bitcoin market remains volatile, many investors are watching closely to see if the US government will sell off more of its Bitcoin holdings, which could have significant implications for the market.

This incident serves as a reminder of the volatile nature of the cryptocurrency market and the importance of verifying information before making trading decisions.

Bitcoin price

Currently, Bitcoin is trading at $27,900, and the total trading volume in the last 24 hours is $19.2 billion.

It has a market cap of $540 billion, making it the top-ranked cryptocurrency on CoinMarketCap.

Despite this, Bitcoin faces difficulties in surpassing the significant resistance level of $27,700.

This suggests that there could be a bearish sentiment that could take over, as the bulls struggle to surpass this mark.

Bitcoin’s trading range currently fluctuates between $27,250 and $27,700.

If Bitcoin manages to surpass the crucial resistance level of $27,700, it may have the potential to rise to $28,050, and even up to $28,650.

On the other hand, if Bitcoin fails to break through the $27,700 resistance, traders may consider shorting Bitcoin with targets set at $27,450 and $27,150.

Let’s hope for a positive development in the market to support Bitcoin’s upward momentum.

Buy BTC now

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