BlockNews
FOLLOW ON X
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
Home CRYPTO

There Might Be A Light At The End Of The Tunnel For Crypto As Positive Inflation Reports Drop

by BlockNews Team
October 14, 2022
in CRYPTO, FINANCE, INVESTING
Reading Time: 3 mins read
A A
1
SHARES
17
VIEWS
Share on XShare in TelegramShare on Reddit

The cryptocurrency world has been experiencing what some investors have called “the crypto winter.” The crypto industry has suffered a significant loss in value this year, losing as much as $2 trillion since the peak of the general bullish trend in 2021.

The crypto markets have been showing a rather sluggish pattern the last few weeks, with investors concerned about the increase in interest rates and the general negative energy about the economy.

The world’s largest cryptocurrency and trendsetter, Bitcoin, has been trading in a range between $18,000 and $22,000 since the start of September 2022.

The flagship cryptocurrency exhibited unusual behavior for the first time in its history. The cryptocurrency’s 20-week moving average slipped below the 200-week moving average.

This is an indicator of what is known as a “death cross,” which occurs whenever the slower-moving average crosses above the faster-moving average, signifying a bearish market.

Bitcoin characteristically does not get close to its 200-week moving average, and it’s a rare event for the price to be at that point. Although this level was reached in the past, it was usually followed by a season of solid price increases. This might not be the case.

This time might be different as Bitcoin has not only failed to hold the level and has closed below it for more than ten weekly candles, but it has also failed to break past the level for the better part of September 2022.

Does This Mean Bitcoin Gets Affected By Inflation?

Bitcoin and other digital assets were usually seen as different and separate from other asset classes, so they could be good assets to help “hedge against inflation,” but that no longer appears to be the case. Analysts have begun to speculate that the whole crypto market is similar to the S&P 500.

The cryptocurrency market has pushed to become more mainstream and behaves similarly to the stock markets.

This is an unusually unpredictable period for cryptocurrency, even by its standards. Whether this pattern will hold and consolidate around these current levels or exhibit stranger behaviors in the coming months is inconclusive. There are expectations that Bitcoin will keep strong until the end of 2022, but the immediate future has been deemed relatively uncertain by macroeconomic conditions.

Will Upcoming Inflation Reports Affect The Bearish Trend?

Bitcoin has been bearish for a while now, although all that might change as analysts believe that a United States Inflation report due Thursday, 20th of October 2022, might be the necessary catalyst to drive the price of Bitcoin out of this uncharacteristically and unusually long “winter” of low price volatility.

The Labor Department is expected to report on Thursday, saying the core Consumer price index (CPI) increased to a year-to-year pace of 6.5% in September from the 6.3% it was in August, according to FactSet.

The core CPI of 6.5% would be the highest recorded over four decades. It explains the actions of the federal reserve officials attempting to return price stability to the norm by tightening monetary policy. This process exerts downward pressure on the prices of risky assets, from stocks to cryptocurrencies.

The analysts at JP Morgan stated that a too-hot CPI would have equities risking a 5% tumble. This could go on to affect risk assets, which are dependent on the CPI number. Risk assets like cryptocurrencies and equities could increase by 3%. This was according to Florián Giovannacci, the head of trading for Covario.

Since September, Bitcoin has been trading between $18,000 and $22,400.

So, the inflation report might be the needed push for the cryptocurrency to break out.

Conclusion

It is uncertain whether the cryptocurrency’s bearish outlook will continue long term or the inflation report will begin the rally for a long-awaited bullish run. Whatever the case, investors and cryptocurrency enthusiasts are intensely preparing themselves for the outcome.

When investors feel uncertain about their money, they look towards hedging. Since investors are looking for assets that can outperform high inflation regardless of whatever risk they may come with, it might be just what is needed to push the cryptocurrencies back into a bullish run.

Tags: cryptoCrypto Winterinflation
TweetShareShare
Previous Post

Tron Founder Justin Sun Calls For Empowerment Of Huobi Token, HT Surges 75%

Next Post

There Might Be Good News For Cryptocurrency as Lending Platform Moon Mortgages Raises Millions In Seed Funds

DON'T MISS THESE! HOT OFF THE PRESS

Pepe Coin’s Wild Rebound: Bull Trap or Breakout Brewing?
CRYPTO

Pepe Coin’s Wild Rebound: Bull Trap or Breakout Brewing?

July 1, 2025
Anime 2.0 Revealed: Studio Azuki and the New Wave of Anime Storytelling
CRYPTO

Anime 2.0 Revealed: Studio Azuki and the New Wave of Anime Storytelling

July 1, 2025
Pi Coin in July 2025: Rebound Brewing or Another Breakdown?
CRYPTO

Pi Coin in July 2025: Rebound Brewing or Another Breakdown?

July 1, 2025
VeChain Struggles to Regain Steam After December Peak
CRYPTO

VeChain Struggles to Regain Steam After December Peak

July 1, 2025
Shiba Inu’s Golden Cross Sparks $110M Whale Surge as Pippen Joins the Party
CRYPTO

Shiba Inu’s Golden Cross Sparks $110M Whale Surge as Pippen Joins the Party

July 1, 2025
Toncoin and Telegram: The Sleeping Giant of 2025?
BITCOIN

Toncoin and Telegram: The Sleeping Giant of 2025?

July 1, 2025
Load More

Related News

Pepe Coin’s Wild Rebound: Bull Trap or Breakout Brewing?

Pepe Coin’s Wild Rebound: Bull Trap or Breakout Brewing?

July 1, 2025
Anime 2.0 Revealed: Studio Azuki and the New Wave of Anime Storytelling

Anime 2.0 Revealed: Studio Azuki and the New Wave of Anime Storytelling

July 1, 2025
Pi Coin in July 2025: Rebound Brewing or Another Breakdown?

Pi Coin in July 2025: Rebound Brewing or Another Breakdown?

July 1, 2025
VeChain Struggles to Regain Steam After December Peak

VeChain Struggles to Regain Steam After December Peak

July 1, 2025
Shiba Inu’s Golden Cross Sparks $110M Whale Surge as Pippen Joins the Party

Shiba Inu’s Golden Cross Sparks $110M Whale Surge as Pippen Joins the Party

July 1, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano Chainlink China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin Technology US Web3 xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • HOME
  • CRYPTO
  • MEMECOINS
  • TECHNOLOGY
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.