With all this in mind, some experts believe that bitcoin may be stuck in a narrow range for the foreseeable future. So yes, investors may not have to fear that prices will fall much longer. But a big rally may not be in the cards either.
“Bitcoin is treading water,” Martin Hiesboeck, head of blockchain and crypto research at Uphold, a crypto wallet firm, wrote in a recent report. “The market is muted.”
However, Hiesboeck added that it is encouraging to see that “every move down is immediately met with large orders” for purchases from large institutional investors. But he expects the breakneck volatility that has become a hallmark of crypto trading to continue.
“Many investors are concerned that the macroeconomic outlook will not improve anytime soon, so they are selling every price increase. At the same time, institutions and savvy investors seem to believe that bitcoin has formed a bottom and continues to accumulate,” he said and added that “such moves often drive excessive price action.”
“The partnership between BlackRock and Coinbase is a huge deal,” Jack Cameron, co-founder of Luna Market, a metaverse advertising and technology company, said in an email.
Cameron added that since there is “still a stigma” attached to bitcoin, several companies such as BlackRock have dived into digital asset sector is good news.
“The more institutional money [that] joins the space, the better for all holders of crypto,” he wrote.
So investors may first need to see some signs that inflationary pressures are finally starting to peak before they decide to push bitcoin prices even higher. Traders will have a better sense of that after the much-anticipated consumer price index (CPI) report for July comes out on Wednesday morning.
“Inflation is what killed bitcoin late last year, and if price pressures show significant signs of easing, bitcoin may be able to break above its recent trading range,” said Edward Moya, senior market analyst for the Americas at OANDA, a currency exchange. the company, says a report.
Is inflation finally starting to slow down?
Inflation is on the minds of consumers, investors, politicians and, of course, the Federal Reserve. Will the pace of price increases finally start to cool a bit?
Investors realize that inflation is not going to magically disappear overnight. But any sign that price pressure is beginning to ease (even modestly) should be cheered.
The prices of electronics and toys sold online fell the most. Clothes were also cheaper to buy online. But grocery prices rose in July. And prices of pet products online rose by nearly 13%, breaking records in the process.
Rising energy costs are hitting British consumers hard
Inflation is a global problem. And it is particularly painful for UK consumers, who face the prospect of significantly higher energy bills this winter.
That’s because energy costs are expected to more than double by January. Energy prices have already risen by 54% this year, leaving some Brits choosing between “heating and eating”. The UK government approved a relief package earlier this year for consumers to try to ease this inflationary burden.
But some argue that the subsidy 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 leading candidate to replace Boris Johnson as Britain’s next prime minister, has proposed tax cuts… but no more direct aid.