Cryptocurrency market analysts explained why the flagship cryptocurrency Bitcoin (BTC) rate quickly returned to almost $20,000, despite high rates of global inflation and the Consumer Price Index (CPI), which amounted to 9.1%, instead of the previously predicted 8.8%.
They stressed that following the results of the data on the current state of inflation, the markets once again received a signal about the upcoming tightening of monetary policy. This is always directly reflected in the performance of cryptocurrencies and digital assets. However, this time the backlash was short-lived. According to experts, the main reason for the absence of downward volatility was that the market had already included an adverse development scenario with the consumer price index in current prices, which made it possible to avoid a fall.
According to them, when most market participants anticipate a particular event that could affect the market, they simply estimate it in advance, so when it happens, nothing happens at the moment. In this case, the rumours about the negative dynamics of the CPI had already worked in advance, so the BTC rate did not collapse, and the market behaved stably.
At the same time, many experts and traders noted that they expected the price of digital gold to fall. However, most of them noted that numerous indicators on the charts both confirmed their pessimistic forecasts and refuted them.
Consequently, the experts assured us that it was impossible to make accurate predictions. Now the situation is such that the BTC rate is likely to continue consolidating until some adverse event occurs in space.
Earlier, the editors of Crypto.ru reported: that in the period from July 11 to July 12, 2022, the capitalization of the crypto market fell by 3.6%, and with it, the price of bitcoin again fell below $20,000.
