There is at least one major market capitulation to: Datadash explains

Popular YouTuber Nicholas Merten (DataDash) argued that investors were in no rush to “buy the dip” due to concerns about inflation numbers, which came in below expectations earlier in the day.

Based on his research, the number of people buying and selling BTC each week has decreased recently, which indicates that the price is likely to continue falling.

More pains to come

In his latest video, Merten argued that the traditional Bitcoin bear market has yet to begin. He imagined that the collapse of FTX wouldn’t be the last negative event in the industry like Genesis or a platform that no one expected to suffer the same fate:

“We still have one or two big dominoes that haven’t fallen yet. Will it be Genesis, will it be the entire cryptocurrency stack, will it be a major exchange that we least expect? There is still a lot of rot under the table. Surrender, specifically infection, no. still real.”

The additional turbulence that an event like this would cause could push the price of Bitcoin even further. Assets have already lost more than 62% since the beginning of the year.

The Federal Open Market Committee meeting, which will take place later this week, is another event that investors have been waiting for. Most consumers expect the Federal Reserve to raise interest rates by 50 basis points. However, Merten claimed that the financial institution may change its mind upon seeing the results of the CPI report.

“Why aren’t people buying dips? The reason, in my opinion, is what’s going to happen here next week, and that has to do with the inflation numbers coming out of the CPI report as well as the Federal Reserve at the FOMC meeting,” Merten said.

Inflation and Bitcoin

Contrary to some assumptions that the leading cryptocurrency can act as a hedge against inflation and that its price should rise in that environment, this has not been the case so far.

The Covid-19 pandemic and the measures taken to limit the effects of the health catastrophe, including the mass printing of paper currencies, have taken their toll, and most countries experienced a major inflationary crisis in 2022. The increase in electricity costs, as well as the military conflict between Russia and Ukraine, also contributed to this. the case.

The US inflation rate exceeded 9% in June, the highest level in 41 years. Bitcoin fell.

However, in the following months, inflation slowed and Bitcoin reacted positively to the news each time.

The post There is at least one major market capitulation: Datadash Explains appeared first on CryptoPotato.

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