If US inflation is below 8.1%, bitcoin could go to $21,000, analyst says.
He argues that US inflation is “key” to the price of bitcoin.
Investors are eyeing the US inflation report to be released tomorrow, Thursday, October 13. This is because depending on what number it is, it can induce or reduce demand for riskier assets. This way, we can see the effect on the prices of markets including bitcoin (BTC) immediately afterwards.
according to analyst on-chain Juan Rodriguez, if Wait! The annual inflation for the United States published this week in September is 8.1%. Such a figure would mean a Index declines for the third consecutive month It was 8.3 per cent in August and 8.5 per cent in July, the highest in 41 years after registering 9.1% in June.
Rodriguez stressed that, although this week’s report is downgrade, it Must be less than 8.1% To give positive feedback to the markets. Given this possibility, he speculated that bitcoin could rise to $21,000. But if the index turns lower, we can see the price fall, as happened in the case of inflation last month, which was not as low as expected.
Meanwhile, economists polled by the Dow Jones saw producer inflation rise 0.2% after falling 0.1% last month. And experts surveyed by the Wall Street Journal estimate that there has been a slight increase in supplier prices. Therefore, a general decrease is not expected.
US Inflation Is ‘Key’ For Bitcoin, Says Analyst
“The problem with this is that, if this number doesn’t drop a lot, inflation is going to lateralize,” Rodriguez deepened, showing this possibility in the red line of the graph. He indicated that such a scenario would suggest that a rise in interest rates would not lead to a rapid reduction in inflation, as was expected by the United States Federal Reserve (Fed).
He argues that such a scenario “would be bad for the economy and the Fed would be expected to continue increasing interest rates aggressively.” In view of this, he argues that investment property will be affectedincluding cryptocurrencies. For this reason, he highlighted that this inflation report will be “important” in risk and bitcoin markets.
From his perspective, he estimates the expected interest rate hike on November 2 would be 75 points. They anticipate that this will not lead to a significant inflow of capital into the markets which will give us a significant upward momentum, he warned. But he estimates that it could make a marginal increase of 50 points on 14th December amid a macro context, which is better than the current one for the markets.