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Four Factors That May Impact The Price Of Bitcoin In The Coming Days

By Rubikkav | Rubikkav Insights | 8 Aug 2022


The price of bitcoin (BTC) started the week on the rise, exceeding USD 24,000, after the plan to reduce inflation in the United States established by the Senate. Although it could experience a setback in the coming days if the achievement of the following 4 events is not positive for the markets.

First of all, the eyes are on the inflation report that the United States will give on August 10. “US inflation data will drive the direction of global markets for the next few weeks,” says Sonam Srivastava, the founder of investment adviser Wright Research.

It summarizes that if the US inflation data this week is worse than expected, we could see volatility in the markets. Something that would affect bitcoin.

gráfico muestra aumento en la infalción de estados unidos

This is because he estimates that consequently the country's Federal Reserve (Fed) would continue to be aggressive in the coming months. Perhaps with another 75-point interest rate hike, according to projections by Timothy Graf, director of EMEA macro strategy at institutional investment firm State Street.

On the flip side, should inflation ease, Srivastava says there would be confirmation of relief coming to markets. Punctually for the second half of the year. According to a Reuters poll, analysts expect the index to decline from 9.1% since the last report to 8.7%.

Inflation, Comments From The Fed, Dollar And China

Second, what you have to pay attention to is the Fed speeches, since it can impact the price of bitcoin and the markets in general. In fact, as has happened in the past, it could be that even a positive or negative economic data is perceived the other way around by investors. This due to a strong comment from the organism.

leve depreciacion en el valor del dolar desde su máximo hitórico en los últimos 20 años

In this sense, the financial adviser Anuj Gupta, vice president of the asset manager IIFL Securities, points out that any hint of a hard line from his officials can trigger massive asset sales. Also, this situation could lead to a higher demand for the US dollar, he says. Perhaps as protection as investors move away from risky assets.

Although the strength of the dollar can also be seen positively for investors. Therefore, the third point to take into account is how bitcoin traders behave in the face of the movement of the US currency index these days, which opened the week lower. In this way, it has continued its fall for almost a month when it reached its maximum in 20 years, reaching parity with the euro.

United States Economy

“The US dollar has been supported by the combination of stronger US economic data releases and aggressive comments from regional Fed chairs, which have encouraged market participants to push back expectations of a dovish policy turn. of the Fed”.

Economic-Influencers-14-September.jpg

Those were the words of MUFG currency analysts Derek Halpenny and Lee Hardman. And they stressed that they believe there is room for the US dollar to recover further in the short term.

Finally, the fourth event that could influence the price of assets, including bitcoin, is the conflict between China and the United States over Taiwan. This situation, as well as the Russian war against Ukraine and all macro tensions, can lead to discouragement in the markets and significant declines.


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