Bitcoin (BTC) went back in time on March 10 when the latest US inflation data caused insane volatility.
1 minute BTC / USD candlestick chart (bit stamp). Source: Trading View
Wheat gives Bitcoin a chance to get its money back
Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD reacted strongly to the consumer price index (CPI) in February.
Despite expectations that matched 7.9%, Bitcoin printing saw a smaller version of the reaction last month with a trip to the 24-hour lowest level after a break above $ 40,000 immediately after.
At the time of writing, bitcoin was trading in the same place as before the event.
“High inflation readings require faster bounce and potential QT, as well as quantitative easing, leading to a higher dollar and a sale of risky assets. This is a short-term reaction,” summed up Michael van de Poppe, a contributor to Cointelegraph.
However, this high inflation is not significant. But in the long run; Bitcoin. ”
Meanwhile, the start of trading on the Wall Street status quo did not change significantly in the short term.
At the time of writing, the S&P 500 is down 0.6%, while rapidly rising commodity prices such as oil and wheat are still in the spotlight.
“Wheat is everything BTC wants to be and more,” joked the famous trader Bentoshi.
“The world’s reserve currency, inflation hedging, you can circulate and carry it in your pocket, and it’s easy. If you’re not going to the local store now, but going to the Wheaties, what are you going to do with your life?”
One-day candlestick chart CFD on wheat. Source: Trading View
The US Federal Reserve’s decision to raise the base rate was made on 16 March.
“The economy needs energy to function. Energy prices are rising, and there is no respite in sight, “added today the materials researcher, the creator of indicators for monitoring material resources.
“So, production has fallen and will continue to fall (Q1 at 0% if no growth in Q2 = official recession). Also QT lol. In the 1970s, raw materials, energy and hard assets were the best option.”
Western Union stops international money transfers to Russia
In another case, the money transfer service Western Union, which has traditionally been a competitor to bitcoin, announced that it would stop transfers to both Russia and Belarus.
Related topics: Rising inflation in Europe: what do bitcoin producers, politicians and financial experts think?
A WhalePanda commentator replied, “If there is something that can replace these companies, and there is something decentralized and no one really controls it, then you do not have to tolerate it physically.”
Market participants came to the conclusion that little has changed for Bitcoin in both lower and higher time frames.