Arslan Butt
Cryptocurrency enthusiasts and investors alike have their sights set on the US inflation data expected to come out on Tuesday, as the market anticipates major updates that could impact the prices of Bitcoin and Ethereum. Despite this looming uncertainty, both digital currencies have held steady, showing little price fluctuation over the past few days.
On February 12, BTC/USD increased by 0.90% over the previous day, and it is presently trading at $21,891.00. Additionally, ETH/USD is currently trading at $1,532.81 after a 0.90% rise in the last 24 hours.
With investors eagerly anticipating significant news, particularly US inflation statistics, on Tuesday, February 14th, both Bitcoin and Ethereum prices remain stable.
Upcoming US CPI Report: Implications for Bitcoin and Ethereum Prices
The US Bureau of Labor Statistics is set to release its January Consumer Price Index (CPI) inflation data on February 14th. This event is anticipated to cause a significant rise in markets, as inflation is expected to plummet. Previously, there had been a conflict between the markets and the US Federal Reserve regarding future rate hikes.
However, in the past week, the markets have shifted towards the Fed’s stance, with investors now anticipating another rate hike in March and possibly one in May. This could be partly due to January’s robust job figures, which reduced the likelihood of a recession.
However, it could also be because of concerns over the upcoming January CPI data, as there is a possibility that the report may not be as positive as expected. The anticipated CPI for January is 0.5%.
Analysis of Recent Macro Trends
The latest inflation statistics show a positive trend with a decline in energy and food prices resulting in decreasing inflation. As a result of this declining inflation, the US Federal Reserve has chosen to implement a modest increase of 25 basis points (bps) instead of a more significant 75 bps hike.
The Federal Reserve has also started to acknowledge these positive trends. However, concerns still persist and are becoming increasingly prominent in the CPI data, which carries significant weight.
While there are compelling arguments suggesting that the current economic trends may shift in the future, the CPI figures have not yet confirmed such a change. Furthermore, the Federal Reserve remains worried that increasing wages could fuel further inflation in the services sector, and thus the recent positive employment numbers have not alleviated their concerns.
Is Inflation Expected to Rise in January?
The latest consumer price readings showed higher-than-projected inflation in the fourth quarter of 2022. Additionally, instead of the predicted 0.1% decrease, inflation increased by 0.1% in December 2022. Furthermore, the CPI revisions for the previous two months, October and November, also came in higher than expected. Experts suggest that this trend may increase the likelihood of inflation rising in the coming months.
The supply dynamics suggest that the CPI Index could either increase or decrease, making it uncertain which direction the cryptocurrency market may take. Investors may choose to invest in cryptocurrencies as a hedge against rising consumer prices in the US. However, if inflation continues to rise, reduced investment in the cryptocurrency market may be expected.
The recent survey suggests that there may be a 0.4% month-over-month increase in the CPI for January, and the core CPI is also projected to increase by the same percentage.
Bitcoin Price Analysis: Technical Perspective
Bitcoin’s price has crossed above the $21,800 level, and now it’s entering again into the sideways trading range of $21,800 to $22,350. On the upside, a bullish breakout of the $22,350 level can expose BTC price towards $22,800 or $23,350.
The MACD and RSI indicators suggest a slight pullback in Bitcoin prices. If the price falls below the $21,550 level, it may trigger a bearish breakout, potentially leading to a decline to the $21,150 level.
Bitcoin Price Chart – Source: Tradingview
However, if prices manage to drop below $21,750, the downtrend may persist, possibly pushing the price down to $21,200. A break below this level could lead to further price declines, with the next level of support at $20,600.
Ethereum Price Analysis: Technical Perspective
Ethereum is currently trading just above the critical $1,500 double-bottom support level, and a close above this level could trigger a potential uptrend toward $1,560.
The current resistance level is being driven by an upward channel that was previously disrupted on Friday. If the price breaks above $1,560, it could potentially reach $1,600 or even $1,680.
Ethereum Price Chart – Source: Tradingview
In the event that ETH is unable to exceed the $1,560 level, it may continue to experience bearish sentiment and increased selling pressure, resulting in a potential bearish breakout below the $1,510 level and pushing prices down to the $1,435 level.
Considerations to Keep in Mind When Investing in Alternative Coin Presales
Investing in presales of cryptocurrencies has become increasingly popular in recent years. These initial coin offerings are conducted prior to the project’s public launch. While investing in a forthcoming cryptocurrency launch can be lucrative, it requires careful consideration.
Meta Masters Guild (MEMAG)
Meta Masters Guild (MEMAG) is a rapidly growing play-to-earn platform in the Web3 ecosystem with the goal of becoming the biggest mobile gaming guild. MEMAG’s project is focused on creating exciting games with playable NFTs, which offer staking, trading, and rewards to players.
The ongoing presale has already amassed over $4.2 million and is now in its final stage. With only a limited time left before the price increase, interested investors need to act quickly.
Fight Out (FGHT)
Fight Out (FGHT) is a cryptocurrency project that aims to reward users for engaging in various activities using advanced technology. Through the FGHT app, users can create a profile and access video-customized workout classes that are tailored to their individual fitness needs.
Presale FGHT tokens are currently available for purchase and can be used to subscribe to the Fight Club app. As more people subscribe using FGHT, its price is expected to rise. Currently priced at $0.0208, the token’s price will increase as the presale comes to an end on March 31, with a maximum expected price of $0.033 USDT.
Early investors can benefit up to 50% from the Fight Out presale
Related
- Bitcoin Price Prediction – How Much Lower Might BTC Go Or is Regulation Backlash Selloff Over Done?
- Bitcoin Price Prediction – Can BTC Stay Rangebound Above $22k After Powell’s Pivot Rejection?
- Are Bitcoin and Ethereum Prices Set to Surge This Weekend Despite Payroll Beat?
Fight Out - Next 100x Move to Earn Crypto
- Backed by LBank Labs, Transak
- Earn Rewards for Working Out
- Level Up and Compete in the Metaverse
- Presale Live Now - $4M+ Raised
- Real-World Community, Gym Chain
This article was written for Business 2 Community by Arslan Butt.
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