Bitcoin price threatens lowest weekly close since 2020 as inflation spooks markets
Bitcoin (BTC) dropped to two-week lows on June 11 as the week’s Wall Street trading ended with bears in control.
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it reached $28,528 on Bitstamp, its lowest since May 28.
The pair had fallen in step with stock markets on June 10, these finishing the week noticeably down — the S&P 500 and Nasdaq Composite lost 2.9% and 3.5% respectively.
This was on the back of surprisingly high inflation data from the United States, which took a turn for the worst in stark contrast to expectations. As Cointelegraph reported, at 8.6%, annual inflation came in at the highest since December 1981.
Reacting, market commentators were thus firmly on the bearish side when it came to future BTC price action.
“When we drop to $22,000 - $24,000 on Bitcoin they will call for lower Don’t be too greedy when the time comes,” popular Twitter account Crypto Tony told followers.
Filbfilb, co-founder of trading suite Decentrader, meanwhile contrasted the current environment with the March 2020 COVID-19 crash. This year’s slow bleed, he argued, was if anything more painful than the “car crash” price declines of the time that briefly took Bitcoin to $3,600.
“Inflation hasn't peaked, and neither has Bitcoin,” MicroStrategy CEO Michael Saylor offered in a more hopeful angle after the data print.
“In the current macro backdrop it doesn't matter how many charts are showing confluence that we are reaching historically oversold levels,” popular Twitter account PlanC countered.
If it were to end the week at current levels or any below $29,450, meanwhile, BTC/USD would be threatening its lowest weekly close since December 2020.
Looking ahead, forthcoming decisions on rate hikes in response to inflation
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