Bitcoin’s price surged past the earlier expectation of USD 40,000 on Wednesday (April 13th) as investors continued interpreting the news that inflation was at the highest point in four decades.
Here are the main takes from the price movement of the largest crypto:
- Bitcoin was trading below USD 40,000 on Wednesday, but the price shot up to 41,000 at 13:00 hours with high trading volume.
- The price was trying to find a support level after hitting and dropping from the USD 43,000 level reached earlier on last week. By Monday 18th April 2022 morning, the price of BTC was USD 39,833, significantly below the USD 43,000 mark.
- The move is coming following the stock markets, which opened with a bullish trend. NASDAQ was up 1.3% while S & P 500 gained 0.6%. Note that sentiments in the equity market are closely related to Bitcoin’s price performance.
- Other popular cryptos that also reported a bullish trend include Eth (ETH) which gained 1.6% to reach USD 3,100, but like Bitcoin, it rolled back and started this week at USD 2,995.72 on Monday 18th April 2022.
- When we turn to the consumer price index (CPI), for the month of March, there was a sharp increase of about 8.5% because of the rising food and energy prices. Although there is an argument that inflation hit a peak in February, the high number (higher than anticipated) might strengthen the Federal Reserve’s move to pick a higher interest rate when it meets next.
Bitcoin is on an uptrend as bonds reconsider the Fed’s tighter bets. According to Edward Moya, one of the top analysts at Oanda, Bitcoin will continue following leads set out in equities. Right now, Moya argues that the growing optimism and consumers are still in excellent shape. Therefore, he predicts that BTC will continue trading in the range of USD 38,000 and USD 48,000 because stocks may come with a limited upside earning season driven by geopolitical realities and inflation risks for the corporate United States.