Here’s why Bitcoin traders shouldn’t overanalyze US inflation data

2/12/2022 6:15:00 AM

Some analysts are linking BTC’s recent $43K dip to the new inflation data, but are these events really correlated?

Some analysts are linking BTC’s recent $43K dip to the new inflation data, but are these events really correlated?

Analysts say record high inflation in the United States is impacting crypto market momentum, but is the impact of the data overstated to the detriment of investors?

February 10, 2022 That statement correctly assessed the market conditions at that time, but one should use a longer time frame when analyzing economic data.11 seconds ago Bitcoin, Ethereum Technical Analysis: ETH, BTC Volatile as US Inflation Hits 40-Year High Prices of ethereum and bitcoin were volatile on Thursday, as markets reacted to U.turning down after failing to clear a key resistance level at $45,668.WATCH LIVE Key Points The latest U.

Furthermore, there’s the possibility that Bitcoin holds no relevant price correlation, a hypothesis that also needs testing.A comparative long-term chart between Bitcoin price and U.inflation data.S.Over the short term, the EUR is strong while the AUD is weak.inflation gives a false impression of correlation and causation, especially when using logarithmic charts.Bitcoin Bitcoin started the day in the green, hitting the $45,000 mark in the process, however as the U.U.consumer price index for January surged to 7.

S.equity session opened, prices weighed, as it was reported that consumer prices had risen to 7.It is estimated that 61.CPI (orange, left) vs.Bitcoin/USD (blue, right).BTC /USD rose to an intraday high of $45,101.Source: TradingView If anything, Bitcoin has anticipated the economic data by roughly three months.7 million with an average case fatality rate of 1.In September 2020, it rallied above $11,000 while the inflation data stagnated below 1.The move saw bitcoin marginally break out of the $44,750 resistance level, however this ceiling held firm, pushing prices to a low of $43,402."These inflation data today came like a punch in the stomach for Jay Powell and his colleagues," Nathan Sheets told CNBC's "Squawk Box Asia" on Friday.

5% and more recently in May 2021.Afterward, the Bitcoin price “cooled off,” failing to break the $60,000 support while the sharp increase in CPI paused two months later in July at 5.This was the third consecutive false break of this resistance, as the bullish pressure from Monday’s session marginally remained throughout the week.It is a public holiday in Japan tomorrow.4%.For those relying on mathematical formulas, the correlation coefficient between Bitcoin price and U.Despite recent volatility, bullish pressure remains, with the moving averages of ten and 25 days still positioned for further upside momentum.S.5% year-on-year, the Labor Department reported Thursday.

inflation oscillated between positive 0.95 and negative 0.94 over the past 12 months.Therefore, associating one to another makes very little sense from a statistical approach.Related: Analysts say Bitcoin’s range-bound trading at a key support level reflects a trend reversal Do traditional markets really show correlation with Bitcoin? Another common mistake is attributing the correlation of other assets to Bitcoin’s performance.Both headline and core CPI rose 0.

Sure enough, there might be a couple of consecutive months of 0.65 (positive or negative) correlation over a year-long period, but data suggests otherwise.Bitcoin, S&P500, WTI Oil, and TIP ETF 30-day correlation charts.Source: TradingView For instance, between August and September 2021, the S&P 500 correlation to BTC averaged 0.65.

However, that is cherry-picking data because a more extended timeframe reveals no such evidence.No price relation was found between Bitcoin and other major assets such as the WTI oil price and the iShares TIPS Bond ETF, which tracks an index composed of inflation-protected U.S.Treasury bonds.Various data points suggest that investors should ignore the intraday price action after economic data is released, because at times, the data provides a false impression between correlation and causation.

Although inflation or other data influence short-term pricing, it does not necessarily impact the prevailing trend.The correlation chart versus traditional markets leaves little doubt that Bitcoin is a class of its own.The views and opinions expressed here are solely those of the.

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Bitcoin, Ethereum Technical Analysis: ETH, BTC Volatile as US Inflation Hits 40-Year High – Market Updates Bitcoin NewsPrices of ethereum and bitcoin were volatile on Thursday, as markets reacted to inflation data from the United States. Try to invest in Berylbit. they are working on L1 blockchain project. Good for long term. Bitcoin is slowly becoming a substitute currency for banks. An economic entity where the supply is unaffected by the demand. Thanks to Fentinq he knows a lot when it comes to Bitcoin, his tweets, tips & predictions have been helpful, thanks for taking your time to educate us. And still holding btc on finex is safer than banks.

Forex Today: US Inflation Data AwaitsForex Today: US Inflation Data Awaits forexnews forextrading forexmarket stocknews cryptonewsdaily

U.S. inflation data is like a 'punch in the stomach' for the Fed, says Citi economistThat means the next Fed rate hike could be as aggressive as 50 basis points, said Nathan Sheets, global chief economist at Citi Research.

Why US Inflation Is So High, and When It May EaseInflation is starting to look like that unexpected — and unwanted — houseguest who just won’t leave.

Bitcoin rejects sell-off as 7.5% US inflation fails to keep BTC down for longBitcoin outsmarts bears as $1,800 losses turn to even stronger gains on the start of Wall Street trading.

Euro Forecast: EUR/USD Setting Up for a CPI Disappointment?The Euro opened up slightly higher against the U.S. dollar this morning after a poor showing on the US vehicle sales front for the January period. Get your market update from WVenketas here: