Bitcoin Price in the Spotlight Ahead of CPI Release and FTX Asset Sale

Stay updated on the impact of the CPI release and FTX asset sale on Bitcoin price. Understand potential scenarios and their consequences. Read now!

Posted 10 months ago in Bitcoin

Prominent crypto trader and analyst based in Amsterdam, Michael van de Poppe, has highlighted the significance of today as major economic indicators are set to be released. The consumer price index (CPI) year on year (YoY) and month on month (MoM) data will provide insights for the Federal Open Market Committee (FOMC) regarding their policy decisions. Meanwhile, the bankrupt FTX exchange is expected to sell its remaining assets. Poppe delves into how the upcoming CPI release may impact the price of Bitcoin. The expected YoY CPI is 3.6% following 3.2% in the previous month, while MoM CPI is predicted to be at 0.6% after a 0.2% reading in the last month. Poppe indicates that expectations are skewed to the upside, which could result in yields reaching new highs. The analyst discusses two potential scenarios in response to the CPI figures. If both CPIs exceed economists' expectations, risk assets may experience a significant sell-off, causing Bitcoin to fall below the $25,000 level. If both CPIs fall below expectations, risk-on assets could rally, yields would decline, and the outlook would become more positive. Bitcoin and gold, in particular, may outperform while the dollar weakens. In addition to the CPI release, Poppe mentions the anticipated sale of assets by the former crypto giant FTX. Following its collapse in November 2022, the new managers will begin selling the remaining assets today to compensate creditors. There is potential for $3 billion worth of cryptocurrencies to enter the market, leading to investor anxiety. Poppe specifically highlights the possibility of a significant sell-off in Solana.

Last updated 9/14/2023, 2:20:37 AM

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