2023 is the year of bitcoin so far in terms of performance. The prices of the flagship crypto have generally increased. And for several analysts and bitcoiners, this momentum should continue. Others, on the other hand, are a little more reserved. A reservation related to the economic context and its impact on the crypto market.
BTC prices, impacted by the publication of inflation figures
Currently trading around $27,700, bitcoin is down 2.34% in the past two days. This trend should not worry those who believe that the asset has become robust enough not to crumble. Of course, it remains an opinion, which is not unanimous.
The idea is even being challenged by Kaiko, a crypto industry data provider. In analysis published Wednesday, May 10Kaiko points to the constant link between bitcoin prices and monthly US inflation figures.
According to Kaiko, the release of this data by the Federal Reserve (Fed) regularly impacts BTC. Generally, the analyst points out, the period of disclosure of these figures marks a certain instability in the prices of the flagship crypto.
Thus, we note volatility in asset prices, 6 hours before the publication of inflation data. This trend is the same 6 hours after they were made public. But for Kaiko, this dynamic, often punctual, should not be this time.
“Intraday volatility, particularly around the data release, remains above average. This trend will continue as the U.S. Federal Reserve made it clear last week that monetary policy will be even more data driven.”said Dessislava Aubert, research analyst at Kaiko.
Concretely, this means one thing. That bitcoin could soon experience a strong variation in its price! Only problem, this one could either climb again, or, on the other hand, collapse. One in the other, it will be necessary to prepare for it.
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