With all of this in mind, some experts believe that bitcoin could be stuck in a tight range for the foreseeable future. So yes, investors may not have to worry about prices falling much further. But a huge rally may not be in the cards either.
“Bitcoin walks on water,” wrote Martin Hiesboeck, head of blockchain and crypto research at Uphold, a crypto wallet company, in a recent report. “The market is down.”
Hiesboeck added, however, that it is encouraging to see that “every move down is immediately greeted by large orders” to buy from large institutional investors. But he expects the rampant volatility that has become a hallmark of crypto trading to continue.
“Many investors fear that the macro outlook will improve anytime soon, so they sell every price increase. At the same time, institutions and sophisticated investors seem to think that bitcoin has bottomed and continues to build “, he said, adding that “such moves often lead to excessive price action”.
“The partnership between BlackRock and Coinbase is a huge deal,” said Jack Cameron, co-founder of Luna Market, a metaverse advertising and technology company, in an email.
Cameron added that since there is “still a stigma” associated with bitcoin, the fact that more companies like BlackRock are diving into the digital asset sector is good news.
“Plus the institutional money [that] joins the space, the better for all crypto holders,” he wrote.
So, investors might first need to see signs that inflationary pressures are finally beginning to peak before deciding to push bitcoin prices even higher. Traders will have a better idea after the release of the highly anticipated July Consumer Price Index (CPI) report on Wednesday morning.
“Inflation is what killed bitcoin late last year, and if price pressures show significant signs of easing, bitcoin may be in a position to surge above its recent trading range,” Edward Moya, senior market analyst for the Americas at OANDA, a currency exchange. company, said in a report.
Is inflation finally starting to subside?
Inflation is on the minds of consumers, investors, politicians and, of course, the Federal Reserve. Will the pace of price increases finally start to calm down a bit?
Investors recognize that inflation is not going to magically disappear overnight. But any sign of price pressures beginning to ease (even modestly) should be applauded.
Prices for electronics and toys sold online fell the most. Clothes were also cheaper to buy online. But grocery store prices rose in July. And prices for pet products online jumped almost 13%, hitting a record high in the process.
Rising energy costs are hitting UK consumers hard
Inflation is a global problem. And it’s particularly painful for consumers in the UK, who face the prospect of significantly higher energy bills this winter.
Indeed, energy costs are expected to more than double by January. Energy prices have already soared 54% this year, leading some Britons to choose between ‘heating and eating’. The UK government earlier this year approved a consumer relief package to try to ease this inflationary burden.
But some argue the support does not go far enough to offset rapidly rising fuel costs. And more stimulus checks may not be in the cards either. British Foreign Secretary Liz Truss, who is the main contender to replace Boris Johnson as Britain’s next prime minister, has offered tax cuts… but not more outright handouts.