Bitcoin Plunges Ahead of Critical US Inflation Data Release; What to Expect?

Key Bitcoin Takeaways
Bitcoin staged an incredible bounce in the early morning session on Wednesday, breaching $55,000.
Nonetheless, retreating US bond yields prompted traders to sell the multi-week top.
The underlying bullish sentiment kept Bitcoin above crucial support levels while the market awaited the US Consumer Price Inflation report.
Bitcoin went through an aggressive short-covering move from its week-to-date low and rallied by up to around 13.24 percent, breaking above $55,000 on Wednesday.
The strong move upward marked the cryptocurrency’s second weekly gain in a row, led by a flurry of supportive catalysts ranging from booming institutional adoption to lower US government bond yields and weaker US dollar. But as the Asian session matured, Bitcoin showed an absence of follow-through among buyers, prompting a correction that wiped about $10 billion off its market capitalization.
Bitcoin-Yield Inverse Correlation
So it appears, consolidating US 10-year Treasury note yields prompted Bitcoin bears to move back into the US dollar—to take some profits off the table. The cryptocurrency still kept a lid on its underlying bullish sentiment as it maintained support above crucial price levels between $52,000 and $54,000.
Bitcoin holds short-term bullish bias above $52,000-54,000 support area. Source: BTCUSD on
The cryptocurrency market lately reacted strongly to the spike in longer-dated US Treasury yields. The 10-year note offered interest rate returns below 1 percent at the year’s beginning. Nevertheless, as of Tuesday, it was 1.596 percent, propelled higher by an ongoing selloff in the bond market.
Investors sold Treasurys because of signs of better-than-expected economic growth …
Story continues on Bitcoinist

Related posts

Market Watch: Bitcoin Price Came Just 4% From a New All-Time High

Bitcoin has managed to hit a high at nearly $56,000 today but has since retraced a bit and it now hovers above $54,000. However, BTC’s dominance suffers as some altcoins, including Binance Coin, have surged in the past 24 hours,…

Bitcoin Undergoes Selloff After Breaching $55,000; Breakdown Ahead?

Bitcoin prices dragged lower in the early Wednesday session by daytraders who decided to secure profits following its rally earlier this week. The flagship cryptocurrency surged to a two-week high above $55,000 as of 0100 UTC, up 13.24 percent from…
BitcoinBitcoin PricecryptocurrencyNews

Bitcoin Reclaims $1 Trillion Market Cap: What’s In Store?

Earlier today, Bitcoin rose to its highest level since late February and regained its $1 trillion market cap. Recently, Bitcoin was unable to break key resistance at $50,000, as it failed to find support over its 50-, 100-, and 200-day…