Bitcoin holds $20K as ECB warns inflation may never return to pre-COVID lows

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Bitcoin holds K as ECB warns inflation may never return to pre-COVID lows
Coinmama


Bitcoin (BTC) steadied at just over $20,000 after Wall Street opened on June 29, as Europe’s chief banker admitted the world “will never” return to low inflation.

BTC/USD 1 hour candle chart (Bitstamp). Source: TradingView

Lagarde on inflation: ‘I don’t think we’ll ever look back’

Data from Cointelegraph Markets Pro and TradingView shows that BTC/USD looks volatile but volatile as it stayed within a tight range on the day.

U.S. stocks were also quiet after fresh losses in Asian trading. In Europe, meanwhile, comments from central bankers set the macro tone.

In particular, European Central Bank (ECB) President Christine Lagarde appeared to say that inflation will remain elevated indefinitely.

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“I don’t think we will go back to that period of low inflation,” she told a news conference at the ongoing ECB Forum event in Sintra, Portugal.

She was joined by Federal Reserve Chairman Jerome Powell, who was equally pessimistic about the forecast, while pledging not to rest until inflation hits the bank’s 2% target.

“That’s our goal, that’s our intent; we think there are multiple paths to get there, getting back to 2 percent inflation while maintaining a strong labor market. We believe we can do it, which is Our goal; there’s no guarantee we’ll be able to do that,” he said.

Bitcoin bulls defend 2017 top

Bitcoin did not react to the comments, which were about two weeks ahead of new U.S. consumer price index (CPI) data.

Meanwhile, for Bitcoin analysts, the focus is on the monthly close in June.

On-chain analytics resource Material Indicators focuses on a breakout now “soon” as monthly candles are almost destined to disappoint.

“The Bulls are defending the top of 2017, but with one more day left, it’s nearly impossible to print a green monthly candle,” it told Twitter followers.

“There is still a weekly chance of green. Expect volatility. Either way, Bitcoin will break out or crash soon.”

An accompanying chart showing the major exchange Binance order book confirms buying and selling interest in BTC/USD centered on the current price.

BTC/USD order book data (Binance).Source: Material Metrics/Twitter

As Cointelegraph reported, June 2022 is already on track to be the worst month since 2018.

Prices continue to bake corporate investors

Elsewhere, MicroStrategy has boosted its bitcoin firm’s funding with a new 480 BTC purchase, a move praised by commentators.

Related: Bitcoin Cash users are not resilient as BCH loses 98% to Bitcoin

In contrast to some buy-ins, MicroStrategy and CEO Michael Saylor are notably opposed to claims that the company could be liquidated over a $205 million loan to acquire BTC.

“While the recent purchase of 480 BTC from Saylor may be relatively small, I think its message is more important than anything else,” Blockware chief insights analyst William Clement responded.

“Despite all the criticism and claims he’s being ‘liquidated’ from the bears, he’s not going anywhere, sticking to his long-term allocation strategy.”

Still, the monitoring resource Bitcoin Treasury showed that MicroStrategy’s inventory fell by a total of $1.4 billion, with second-ranked Tesla down nearly 50%.

Payments network Square also took a $60 million cut in its $220 million grant.

BTC treasury data for major listed companies (screenshot).Source: Bitcoin Treasury Bonds

The views and opinions expressed here are those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk and you should do your own research when making a decision.



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