• The U.S. Consumer Price Index (CPI) data recently revealed a stronger inflationary trend than the previous month, with headline inflation rising to 3.2% from 3% in June and core inflation remaining steady at 4.8%.
• Bitcoin reacted positively to the news of higher inflation, increasing by 0.48%.
• Short-term holders are tightening their grip on the market as the $30,000 threshold looms.
Troubling Signs for Bitcoin as U.S Investors Pull Back
U.S investors have started to pull back from Bitcoin following signs of an uncertain market outlook and increasing volatility in prices due to external factors such as U.S inflation rates and other macroeconomic forces that impact the cryptocurrency’s value.
Bitcoin Shatters ‘Digital Gold’ Narrative with New Independent Trading Pattern
The recent developments have also caused Bitcoin to shatter its long-held narrative of being digital gold, with its independent trading pattern suggesting that it is no longer just a safe haven asset but a separate asset class altogether that is subject to its own price fluctuations based on external factors such as trading volume and demand for the cryptocurrency itself.
Bitcoin Trading Flat Following Uptick in U.S Inflation to 3.2%
In response to higher than expected U.S inflation levels reported recently, Bitcoin has been trading flat and is not showing any significant movement in price or volume despite strong macroeconomic indicators like increased consumer spending and lower unemployment rates pushing up overall consumer confidence in the economy at large..
Bitcoin Futures Surge Suggesting Fresh Capital Entering Market
Despite this, there are still indications of fresh capital entering into the market through bitcoin futures contracts which have seen an increase in open interest since late May 2020 indicating that institutional investors may be taking positions in anticipation of future gains from holding BTC over extended periods of time instead of actively trading it on exchanges or using it for payments purposes..