Following the lawsuits against Binance from the SEC, the exchange and its CEO have filed a motion of dismissal.
After a week of sideways trading, Bitcoin price saw a brief spike after the United States saw its highest Consumer Price Index data in the past two decades. While the cryptocurrency might be looking at an overall dip in the past seven days, the data aligned with the CPI indicates that Bitcoin investors are hoping to hedge against inflation of the fiat currency.
On 12 April, Bitcoin saw a quick incline, as shown in the Trading chart below.
According to the US Bureau of Labor Statistics, the United States CPI has increased by 8.5% year-on-year, driven up by a massive 1.2% in March by itself. The rapid rise points to strong inflationary pressure that has been felt across the economy in the United States. The Federal Reserve has been struggling to control the rise in inflation, and criticism of the Fed has been noted across both cryptocurrency analysts and traditional financial experts alike. Professor Steve Hanke, trading economist and believer of the free economy, pointed that this type of CPI incline has been the tale of countries with extremely underdeveloped economies like Zimbabwe and Venezuela. According to Henke, “[central] banks have failed” and that it might be time to look to an alternative asset class – like cryptocurrency – to avoid the rapid inflation surges.
Source: U.S. Bureau of Labor Statistics
U.S. CPI came in at *8.5%* level, which means that inflation is likely already in the double digits. A few years ago these type of numbers were mythical stories associated with Venezuela, Argentina, Zimbabwe and Weimar. Central banks have failed. It’s time for plan ₿. #Bitcoin
— Gabor Gurbacs (@gaborgurbacs) April 12, 2022
Bitcoin and the tech stock market
While the CPI struggles to get any sort of health behind it, the S&P 500 market has been gaining slowly after facing a bearish few months following the global tension with the Russian-Ukraine war and the continued uncertainty with the global pandemic. Bitcoin’s relationship with the tech market has been growing closer and closer, with the cryptocurrency’s increases and declines closely correlating with tech stock. Michael Taylor, Bitcoin bull and MicroStategy CEO, noted that the rise of inflation is worse than the average population might think, commenting that Bitcoin – in comparison – is doing a lot better than the perception might be.
While the stock//Bitcoin correlation might not be overall great for the market – as it might add potential fuel to crypto volatility – the relative strength index (RSI) of Bitcoin points to a potential rally for the crypto industry in the next little while. As noted by Bitcoin analyst BTCfuel, the RSI currently indicates a strong bullish move if historic trades are anything to go by.
#BITCOIN MEGAPUMP SOON 🔥🔥
When looking at the RSI, the 2022 Bitcoin correction is very similar to the 2021. Strong BULLISH move imminent pic.twitter.com/blmLVCxVRc
— BTCfuel (@BTCfuel) April 12, 2022
Bitcoin over the past week
Looking at the leading cryptocurrency’s movements over the past seven days, we can see where the CPI-driven spike took Bitcoin price, driving BTC from trading just below $39,400 USD to above $40,200 USD. While it might have taken a slight dip since then, market sentiment remains positive, leading to the possibility of a sustained rally for the cryptocurrency.