By Nathan Ferguson
US inflation climbed towards 8.4% in March, the firmest acceleration since 1982.
Bitcoin slightly declined beneath the 50-day MA, dipping further inside the range it traded most of this year. The leading crypto by market share plummeted towards the $41,919 lows early on Monday in the Asia session, withdrawing for the 7th day over the previous eight days.
Concerns about stiffer monetary policy have dragged BTC and other alt lower since the king crypto peaks beyond the $48K mark. Moreover, last week’s Miami BTC 2022 Conference could not reverse the market’s downside.
Economists stated that US inflation jumped to around 8.4% in March, accounting for the fastest stride since 1982. Meanwhile, Goldman Sachs’ Jan Hatzious said that Fed could hike interest rates beyond 4%.
Crypto lender Nexo’s Antoni Trenchex commented that BTC’s 2022 sugar rush passed. He added Tuesday’s (possibly) ugly consumer price reports by the US remind us that Fed Reserve remained stuck in a hardy and rock place in curbing inflation without ruing the economy.
Bitcoin steadying beneath the 50-day MA would bring $38K in play. Remember, BTC has hovered within the $35K and $45K range in 2022. The breakout beyond $48K last month had BTC at YTD peaks. But BTC met resistance near the 200-day MA.
The world’s largest cryptocurrency traded near $42,192.90 at this publication, dropping 0.99% over the past day. Ethereum lost 2.41% to hover at $3,160.74.
Meanwhile, Miller Tabak’s Matt Maley does not see sell-offs as a concern. He stated that the retracement from late March peaks is a technical move in the marketplace. Maley trusts BTC is working on the overbought conditions that emerged following the 35% surge from January to March. He added that Bitcoin would keep its multi-month upside trend provided it holds beyond $40,000.
Furthermore, BTC’s tendency to react in sync with products like US tech stocks makes the pullback an expected thing following a challenging week for the American marketplace. Bitcoin’s correlation with NASDAQ 100 jumped back to record zones.
NASDAQ 100 closed under the 50-day MA on Friday. Nexo’s Trenchev believes it might see BTC breaking the high correlation, closing beyond $45K.