Bitcoin heads into the end of February with an uncertain mood. Liquidity piles up on either side of the spot price as Bitcoin moves within a tight trading range.
Financial Support for Bitcoin
Data from Cointelegraph Markets Pro and TradingView shows Bitcoin remains stuck in a narrow range after the Bybit hack. Popular trader CrypNuevo pointed out that liquidations are equal both to the downside and upside, noting key levels at $94.7k and $92.5k. Fellow trader Roman expects a return to the bottom of the multimonth trading range, suggesting that $90k support could be reached shortly.
Impact of Stagflation and PCE on the Market
Markets are waiting for the US inflation data release. The Personal Consumption Expenditures (PCE) Index is reported to be the Federal Reserve's 'preferred' inflation gauge. Mosaic Asset described a potential 'stagflation' economic scenario as a major influence on investor sentiment, with historical data showing that stagflation is not necessarily associated with poor stock market performance.
Gold and Dollar Index Amid Volatility
Gold continues to set new all-time highs, while the US Dollar Index (DXY) seeks a reversal from a downtrend. As noted in The Kobeissi Letter, the rise in gold prices alongside rising 10-year note yields and the strengthening US dollar is unusual, indicating strong demand for gold as a 'global safe haven asset' amidst concerns over US trade policy.
Despite the current uncertainty, both the global economy and Bitcoin market continue to face volatility. While gold solidifies new highs, Bitcoin seeks support and may see significant movements in the foreseeable future.
