Bitcoin updated its ATH at night, now it is 124474, and it fell to 118K, where it is currently located.
Trump's appointee (who he appointed to the Bureau of Labor Statistics, the agency that provides statistics on inflation and the labor market) turned out to be from the series 'neither to steal nor to guard'. The CPI data came out better than expected - that's good. But the PPI turned out not just worse but significantly worse than the forecast (3.3 vs. expectations of 2.5%). This is a significant unprecedented difference between expectations and reality.
Trust in the figures that are important for the Fed (inflation and labor market) is decreasing. Because it is obvious that they are presented in a way to please Trump, and then in a way to return to reality, while the heads of the statistical office change like gloves.
Currently, the S&P 500 is slightly down, and the dollar index has risen to 98.23.
Against this backdrop, Bitcoin has decreased to 118K, and the market capitalization has fallen to 3.95 trillion. (That's why I mentioned here that consolidation above 4 trillion is when we hold above this level for at least 72 hours, and for now, we just fell short).
The Bitcoin dominance index remains below 60%, meaning that altcoins are holding up well, and there is no panic selling.
At the same time, there have been about 1 billion liquidations in the market. Those who were afraid to buy Bitcoin at 100-110K but then couldn't hold back and entered with leverage above 120K are facing harsh market reality.
And why should it be?
Have bad numbers come out? But the rate is still being lowered in September, that's obvious.
Well, the fund-of-funds is one thing, and crypto is another. While the stock market can turn in many directions, the path for crypto is quite straightforward and unambiguous. I just talked about it yesterday.
It is clear that linear growth will not happen. Corrections, sell-offs, and weak hands shaking out - all of this is bound to happen.
Are there many among you who bought Bitcoin at 10K or lower and still haven't sold?
I think there are a few. And it wasn't that long ago.
And when Bitcoin costs 1 million, there will be only a few who bought it at 100-120K.
That's how the market is.
From the interesting:
- Bitcoin has surpassed Google in market capitalization. Just a couple of years ago, this was hard to imagine.
- Trump stated that the Fed's rate should be 1%.
- Papua New Guinea plans to create a strategic BTC reserve. TOP news). They somehow had their election commission eaten in a remote area during elections).
Moreover, this wasn't that long ago. And they are already creating a reserve in Bitcoin.
What to expect from Bitcoin next?
In the short term, it will move between 115 and 120K, then it will re-establish above 120K and start to update its highs. This might happen before Monday.
And here are some potential obstacles and problems on the way to this milestone in the near future and medium-term, to what levels and for what reasons Bitcoin will fall - we will see soon.
'TAKEN FROM THE MAIN CRYPTO CHANNEL'
