Inflation Scares Markets: Bitcoin Threatens Lowest Weekly Close since 2020

BTC needs to recover the $29,500 threshold to avoid continuing its lower low pattern on the weekly chart.

Market news • Bitcoin (BTC) fell to two-week lows today, coinciding with the weekly trading close on Wall Street under bear control. Hourly chart of BTC/USD (Bitstamp). Source: TradingView US inflation press reveals setback Cointelegraph Markets Pro and TradingView reported BTC/USD at $28,528 on Bitstamp, the lowest since May 28. Yesterday the pair fell hand in hand with equity markets, which ended the week sharply lower: the S&P 500 and the Nasdaq Composite lost 2.9% and 3.5% respectively. This came as a result of surprisingly high US inflation data, which took a worse turn in stark contrast to expectations. As reported by Cointelegraph, annual inflation of 8.6% is the highest since December 1981. Market analysts have therefore decisively sided with the bears, regarding the future price action of BTC. "When we go down to $22,000 – $24,000 for Bitcoin, they will be crying out further downwards. Don't be too greedy when the time comes," Crypto Tony tells his Twitter followers. Filbfilb, co-founder of the Decentrader trading suite, compared the current situation to the collapse of March 2020. This year's slow hemorrhage, he argued, was more painful than the price drop of the time, which briefly brought Bitcoin back to $3,600. "Inflation hasn't reached its peak, and neither has Bitcoin," said Michael Saylor, CEO of MicroStrategy, with greater hope after the data was released. "In the current macro environment, it doesn't matter how many charts show confluence in the fact that we are reaching historical oversold levels," the popular PlanC Twitter account countered. "As long as Bitcoin remains risk-related on assets, I don't expect a significant turnaround anytime soon." If it were to end the week at current levels or below $29,450, BTC/USD would risk ending the week at its lowest level since December 2020. Weekly chart of BTC/USD (Bitstamp). Source: TradingView Doubts emerge about the rate hike Looking ahead, the next decisions on rate hikes in response to inflation are the focus of next week's attention. Related: Bitcoin Breaks Longest Correction in History: 5 Things to Keep an Eye on This Week The shared minutes of the Federal Reserve's Federal Open Markets Committee (FOMC), scheduled for its June 14-15 meeting, will provide clues as to how aggressive policymakers intend to be about stemming price hikes. "I think at some point the market will realize that inflation will not disappear anytime soon and that rates will still be relatively low," Daan Crypto Trades said, adding that gold could provide a first indication of this "new old" trend, exiting its current trading range. "$GOLD could be the main factor in this change. We look at it closely. At the moment, we are still in the phase of negative factors," reads a post today. Daily chart of XAU/USD. Source: TradingView The views expressed herein are solely of the author and do not necessarily reflect those of Cointelegraph.com. Every investment involves risks: you should conduct your research before making a decision.