Crypto market muted as US CPI data looms

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Crypto markets are remaining muted after an initial bright start on Tuesday. U.S. CPI data is due to be published later today. How will bitcoin and crypto react?

New inflation figures due

With the U.S. Consumer Price Index (CPI) figures due out later today, more will be known whether inflation will make an anticipated decrease. Energy prices are expected to help inflation make a 0.1% decrease, which compares favourably to the 0.4% and 0.6% seen in September and August.

Bitcoin approaches support

With this in mind, the crypto market is generally muted after an initial bounce early on Tuesday from the slump of the last few days. Bitcoin is continuing a slow bleed to the downside, but with strong support at $36,000 underneath there is nothing untoward with the price thus far.

Bitcoin’s behaviour to a positive or negative inflation figure will be interesting to see, given how much the premier cryptocurrency has de-correlated from stocks and traditional financial markets in general.

On this note, it might still be argued that bitcoin is likely to continue to see steady growth as investors look to take advantage of its perceived safety in comparison to equities, bonds, and other traditional financial assets.

Sentiment towards bitcoin is drastically changing

Sentiment towards bitcoin, ethereum, and even crypto in general, has changed dramatically over this year, as famous investors such as Stanley Drukenmiller and Paul Tudor Jones espouse their virtues.

Bonds or currency to collapse?

Meanwhile, in the world of traditional finance, central banks are scrambling to walk the tightrope of keeping their respective bond markets propped up while defending their currencies at the same time. With such extreme pressures besieging them it might be that governments and their central banks need to make the decision to let one of these fall, and the favourite to do so will likely be the currency.

Trust in fiat currency is eroding

It is into this kind of world that bitcoin has been bestowed upon civilian populations. However, it remains a shame that mainstream media has put so much effort into besmirching what is a pristine hard money asset. Trust in governments has still not fallen to the levels where the civilian population will question the edicts from authority which are mostly negative towards bitcoin and other cryptocurrencies.

Be that as it may, the curtain that protects central banks from the public gaze is getting very frayed. Trust in fiat currencies continues to prevail… but only until it doesn’t.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.