Originally published on: March 10, 2022
Bitcoin experienced a blast from the past on March 10th as it surged past $40,000 following the release of the latest U.S. inflation data, only to quickly drop back down to 24-hour lows. The Consumer Price Index (CPI) for February met expectations at 7.9%, triggering a rollercoaster ride for the cryptocurrency.
Renowned analyst Michaël van de Poppe explained, “High inflation numbers are calling for faster hikes and potential QT, quantitative tightening, resulting in a stronger Dollar and people selling their risk-on assets.”
Despite the turbulence in the cryptocurrency market, the traditional financial landscape did not show much change, with the S&P 500 down 0.6% and commodity prices like oil and wheat taking the spotlight.
Meanwhile, money transfer giant Western Union decided to cease remittances to Russia and Belarus, prompting discussions about decentralized alternatives like Bitcoin.
Even with the market fluctuations and external developments, Bitcoin remained relatively stable on various timeframes. Analysts noted patterns like a rising wedge and a local top at $69,000, signaling a potential range for Bitcoin’s price movement.
As BTC/USD struggled to maintain support at $40,000, market participants anticipated further volatility and potential price adjustments in the near future.
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