The crypto market, volatile by nature, once again showed its fragility following the Trump-Harris debate and the upcoming release of the Consumer Price Index (CPI). Bitcoin, which is often seen as an asset detached from traditional political and economic uncertainties, dropped by 2.2% amidst growing uncertainty.
Consequences of the Debate for Bitcoin
The Trump-Harris debate, anticipated to provide insights into future policies, left cryptocurrency investors wanting more. Neither Donald Trump nor Kamala Harris addressed the issue of digital assets, a crucial topic for Bitcoin supporters. The lack of comments on cryptocurrency regulation increased uncertainty, leading to an almost immediate reaction: the price of Bitcoin plunged nearly $1,000 in just one hour, reaching local lows of $56,099. 'The silence on cryptocurrencies increased uncertainty,' explains trading company QCP Capital.
Impact of the Upcoming CPI
Anticipation of the Consumer Price Index (CPI) release also contributed to Bitcoin's decline. This key economic indicator, crucial for traditional markets, also plays a determining role in BTC's price evolution. Forecasts around the CPI suggested a decline from 2.9% to 2.55%, but some experts from QCP Capital believed the chances of an upward surprise were high. If CPI figures exceed expectations, this could reinforce inflationary pressures and trigger a massive selloff of risky assets, including Bitcoin. Despite these fears, some experts remained optimistic, expecting a limited impact from the CPI.
Technical Challenges for Bitcoin
While political debate and the CPI were putting pressure on Bitcoin, technical indicators were also not in the cryptocurrency's favor. On the 4-hour chart, traders identified significant resistance. BTC/USD is hitting two essential trend lines: the simple moving average (SMA) and the exponential moving average (EMA) over 200 periods. These levels, located at $59,200 and $58,840, respectively, acted as a ceiling that Bitcoin was unable to break through. Trader Daan Crypto Trades noted that as long as BTC fails to surpass these moving averages, it will be difficult for the bulls to regain control of the market.
While Bitcoin has lost ground, the cryptocurrency remains in a strategic position, ready to rebound as soon as external signals allow.
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