Cryptocurrency Opinion and Analysis

Bitcoin price CPI gains last just 1 hour as Mt. Gox sell-off fears linger

2024.07.11 11:14

Bitcoin (BTC) spiked to new one-week highs on July 11 as United States macroeconomic data delivered a bullish surprise.

Bitcoin price CPI gains last just 1 hour as Mt. Gox sell-off fears lingerBTC/USD 15-minute chart. Source: TradingView

Bitcoin quickly erases a trip to one-week highs

Data from Cointelegraph Markets Pro and TradingView showed a rapid but brief BTC price climb to $59,516 on Bitstamp.

This followed the June print of the US Consumer Price Index (CPI), which showed inflation slowing beyond expectations.

Year-on-year and month-on-month CPI both came in 0.1% lower than forecast, leading to a positive reaction across both crypto and US stock markets.

“The all items index rose 3.0 percent for the 12 months ending June, a smaller increase than the 3.3-percent increase for the 12 months ending May,” an accompanying press release from the US Bureau of Labor Statistics confirmed.

“The all items less food and energy index rose 3.3 percent over the last 12 months and was the smallest 12-month increase in that index since April 2021.”

Bitcoin price CPI gains last just 1 hour as Mt. Gox sell-off fears lingerUS CPI 12-month % change. Source: Bureau of Labor Statistics

Nonetheless, the initial gains proved shortlived, with BTC/USD quickly erasing the $1,000 it had initially added.

“Inflation coming down faster than expected. Local higher high for Bitcoin in response,” popular trader Jelle summarized on X (formerly Twitter).

“Time to let the dust settle, but safe to say it’s much stronger than it was at the start of the month. Reclaim $60,000 and things will look much better.”

Bitcoin price CPI gains last just 1 hour as Mt. Gox sell-off fears lingerBTC/USD chart. Source: Jelle/X

$60,000 remained the key level on the radar for market participants, with fellow trader Wolf identifying it as a target for a resistance flip.

“The 60-61.6k range is where the strongest resistance lies, due to horizontal and weekly 21EMA barriers,” he told X followers, referring to the 21-week exponential moving average at $60,900.

“If this level is cleared, the bulls will regain control.”

Bitcoin price CPI gains last just 1 hour as Mt. Gox sell-off fears lingerBTC/USD chart. Source: Wolf/X

As Cointelegraph reported, other important lines in the sand within the Bitcoin bull market include the 200-day moving average and short-term holder cost basis, the latter still high above spot price at $64,088, per data from onchain analytics resource Look Into Bitcoin.

Bitcoin price CPI gains last just 1 hour as Mt. Gox sell-off fears lingerBitcoin short-term holder realized price. Source: Look Into Bitcoin

Short-term holders, the name given to the more speculative end of the Bitcoin investor cohort, held up to 2.8 million BTC at a loss when price hit four-month lows of $53,500 last week.

BTC price sentiment beholden to Mt. Gox pressure

The mood overall meanwhile remained cautious, as markets anticipated the start of distribution of coins belonging to creditors of defunct exchange Mt. Gox.

Related: Bitcoin traders’ profit margins repeat 2022 bear market — New research

Crypto commentator Zen suggested that a BTC price “nuke” could still result as funds hit exchanges, with two days required for the market to rebalance itself.

That view also held beyond trading circles, with Jamie Coutts, chief crypto analyst at financial services firm Real Vision, arguing that it would ultimately be a cathartic process.

“While painful in the short term, the distributions of the Mt.Gox reserve and government sales remove the annoying supply overhang, helping distribute coins to a wider array of holders, thereby growing the network and leaving Bitcoin even better off than before,” he wrote on X on July 10.

Bitcoin price CPI gains last just 1 hour as Mt. Gox sell-off fears lingerMt. Gox BTC reserves vs. BTC/USD. Source: Jamie Coutts/X

Coutts referenced ongoing BTC sales from the German government, which Cointelegraph continues to report on.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 81,714.89 5.58%
ethereum
Ethereum (ETH) $ 3,190.14 1.48%
tether
Tether (USDT) $ 1.00 0.01%
solana
Solana (SOL) $ 209.63 3.79%
bnb
BNB (BNB) $ 638.65 1.60%
dogecoin
Dogecoin (DOGE) $ 0.295245 29.54%
usd-coin
USDC (USDC) $ 1.00 0.00%
xrp
XRP (XRP) $ 0.594106 3.79%
staked-ether
Lido Staked Ether (STETH) $ 3,186.42 1.46%
cardano
Cardano (ADA) $ 0.595805 10.75%
shiba-inu
Shiba Inu (SHIB) $ 0.000027 18.50%
tron
TRON (TRX) $ 0.166102 2.38%
the-open-network
Toncoin (TON) $ 5.40 0.87%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,777.19 1.57%
avalanche-2
Avalanche (AVAX) $ 32.20 5.13%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 81,604.86 5.55%
sui
Sui (SUI) $ 3.26 15.25%
weth
WETH (WETH) $ 3,191.70 1.65%
chainlink
Chainlink (LINK) $ 14.33 1.87%
bitcoin-cash
Bitcoin Cash (BCH) $ 442.32 3.58%
polkadot
Polkadot (DOT) $ 5.26 9.11%
leo-token
LEO Token (LEO) $ 7.06 2.90%
near
NEAR Protocol (NEAR) $ 5.19 11.11%
aptos
Aptos (APT) $ 11.35 5.80%
litecoin
Litecoin (LTC) $ 77.29 2.09%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,355.57 1.60%
uniswap
Uniswap (UNI) $ 9.30 0.69%
usds
USDS (USDS) $ 1.01 1.40%
pepe
Pepe (PEPE) $ 0.000013 11.22%
internet-computer
Internet Computer (ICP) $ 9.24 5.14%
bittensor
Bittensor (TAO) $ 574.13 10.21%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.52 2.63%
kaspa
Kaspa (KAS) $ 0.153187 13.40%
crypto-com-chain
Cronos (CRO) $ 0.138529 28.78%
ethereum-classic
Ethereum Classic (ETC) $ 23.34 4.39%
stellar
Stellar (XLM) $ 0.111993 7.52%
dai
Dai (DAI) $ 1.00 0.00%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.41896 6.24%
dogwifcoin
dogwifhat (WIF) $ 3.09 22.76%
blockstack
Stacks (STX) $ 2.05 17.73%
whitebit
WhiteBIT Coin (WBT) $ 20.77 3.70%
monero
Monero (XMR) $ 159.69 2.01%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.03%
aave
Aave (AAVE) $ 189.31 3.06%
okb
OKB (OKB) $ 45.10 5.59%
mantle
Mantle (MNT) $ 0.79157 0.56%
filecoin
Filecoin (FIL) $ 4.32 5.78%
arbitrum
Arbitrum (ARB) $ 0.646699 4.65%
injective-protocol
Injective (INJ) $ 26.04 7.11%
celestia
Celestia (TIA) $ 5.76 6.25%