After passing $30,000 the day before, Bitcoin climbed higher when a closely-watched inflation index revealed that rising prices slowed in March. According to the Bureau of Labor Statistics (BLS), the Consumer Price Index increased by 5% in the 12 months leading up to March. While Bitcoin remained in green, the majority of the top ten altcoins were trading in the red.
Popular analyst and trader Michael Van De Poppe took to his Instagram handle and said that the market conditions are tough for altcoins.
He wrote, “Tough market circumstances for Altcoins as most of them are correcting the entire move. Bitcoin is still at $29,900 with CPI coming up today. CPI coming in hotter as expected -> rough correction seems likely unless Core / MoM is going to be good.”
Rekt Capital, a popular trader, and the analyst said that BTC/USD was continuing to build on its strong daily close from April 11, which took it above a significant resistance trendline. “BTC is showing initial signs of a successful retest of the Higher High resistance into new support,” he wrote.
The CPI, which analyzes price increases across a wide range of goods and services, may provide insight into the Federal Reserve’s next move. According to the March inflation report, pricing pressures abated as the headline consumer price index increased 5.0% in the year through March, down from 6.0% and somewhat less than the consensus projection. From 0.4% to 0.1% each month, inflation slowed.
As a result, Bitcoin is likely to continue its recent rally, and the largest asset by market capitalization may be poised for a surge above $32,000. Since June 2022, the 28,000 – $32,000 level has been a critical zone where Bitcoin price faces resistance. A surge above $32,000 could pave the way for BTC to reach the $35,000 bullish target.
Robert Kiyosaki, author of “Rich Dad, Poor Dad,” foresees a market catastrophe and asserts that recessions are the best periods to acquire wealth.
In a tweet on Monday, the “Rich Dad Poor Dad” author and personal finance guru revealed that he borrowed millions of dollars during the financial crisis to acquire low-cost real estate. He continues to believe that the ideal time to get rich is when asset prices drop. Previously, he advised buying gold, silver, and bitcoin when their values fell in order to profit from their comeback.
The latest prediction by Rich Dad Poor Dad Author
The best-selling author recently issued a warning on Twitter about the upcoming great global recession, which has the potential to be even worse than a great depression. He foresees retirement, insolvency, unemployment, and homelessness. According to Kiyosaki, there is good news as well, much like the proverb says that every cloud has a silver lining. A recession means bargains everywhere, as well as lower gold and silver prices.
Kiyosaki is bullish on BTC
Just before the start of the new year, on December 31, Kiyosaki stated in a tweet that the Securities and Exchange Commission (SEC) would “crush” most altcoins with its stringent laws, which is why he is currently only bullish on BTC.
He continues by saying that the reason he is enthusiastic about bitcoin is that it is a commodity similar to gold, silver, and oil. The majority of crypto tokens are classified as securities, and SEC laws will kill the majority of them. He claims he’ll buy more bitcoin.
Kiyosaki projected that Bitcoin’s price would fall to $10,000 after the dust settled following the FTX collapse. He also stated that he intends to take advantage of the potential drop in Bitcoin’s value to between $10,000 and $12,000 as a result of the selloff in order to expand his holdings.
The price of bitcoin has significantly increased since the beginning of this month. The prediction of Kiyosaki seems to be bullish on Bitcoin and he has suggested taking advantage of the upcoming dip in prices due to the recession.
The leading cryptocurrencies have been demonstrating a strong trend as we woke up to another piece of good news about SBF being refused bail and required to be imprisoned until February of the next year.
The publication of the Consumer Price Index (CPI) statistics for the month of November may be credited for the unexpected spike in the price of cryptocurrencies. According to recent reports, the annual rate of the CPI has decreased to 7.1% from 7.7% in October. On the other hand, around 7.3% was projected to be the CPI reading for the month of November.
Binance, the biggest cryptocurrency platform in the world, has been having some difficulties as of late. Apparently, the exchange witnessed withdrawals of nearly $2 billion in the previous 24 hours, according to blockchain analytics company Nansen.
The amount of $1.9 billion is the greatest daily outflow since at least June and was responsible for the bulk of the $2.2 billion in Ethereum-based withdrawals that occurred over the course of the last week.
Binance lost $902 million on Monday due to withdrawals. The sudden withdrawal of capital by investors may be the result of government pressure on the exchange. A long-running criminal inquiry into Binance’s compliance with US anti-money laundering rules and penalties has been slowed by disagreements among prosecutors at the US Department of Justice.
What Does CZ Have To Say About It?
Changpeng Zhao, the Chief Executive Officer of Binance Holdings Ltd., issued a response in which he cautioned his team members to expect difficult months ahead and stated that the firm will overcome current challenges. In doing so, the cryptocurrency billionaire attempted to assuage concerns regarding the state of the company’s finances.
CZ said that the cryptocurrency sector is at a historic moment in a message that was given to employees. CZ also stated that Binance is in a good financial position and would survive any crypto winter.
In his words:
“While we expect the next several months to be bumpy, we will get past this challenging period – and we’ll be stronger for having been through it.”
Referring to the widespread exodus of investors, he noted that as a result of the recent collapse of FTX, his company has been subjected to a great deal of additional scrutiny and difficult inquiries.
There is no question that the failure of FTX has shaken the confidence of investors, which has driven some traders to seize control of their tokens and remove them from exchanges.
The failure of FTX has unquestionably resulted in a great deal of havoc across the sector. It was decided this morning not to grant the disgraced founder, SBF, bail, and it is obvious that this whole drama is the reason for the problems Binance is now experiencing.
The cryptocurrency industry may be in for additional difficulty as a result of this. All day, every day, people deposit and withdraw funds for a wide range of reasons. Binance has a debt-free capital structure and guarantees all user assets at a 1:1 ratio. Consequently, I believe the investors’ current stance is very reasonable.
The overall crypto market opened on the first day of September on a bearish note as the large-cap cryptocurrencies are mostly trading red. For instance, Bitcoin the firstborn currency is shifting between $19,000 and $20,000 while Ethereum is just maintaining above $15,000. In the last 30 days, the first two largest cryptocurrencies by market cap have lost 13% and 6% respectively.
Also, the global crypto market cap has declined below $1 trillion and has lost 1.30% over the last 24hrs trading at $973.25 billion.
Meanwhile the industry experts are of the belief that the month of September is going to be a rough ride for digital currencies. As per the reports by Bloomberg, even in the previous times, the month of September hasn’t been that great for Bitcoin, especially since 2017.
As per the reports, in the last 5 years, Bitcoin has dropped around 8.5% and even Ethereum has seen a loss during the same timeframe. Only 25% of the period the cost of ETH has increased, as it typically decreased by double-digit. The most anticipated ETH merge is scheduled to occur at the beginning of this month.
Bearish Days Ahead
When the reports are looked into closely it suggests that there are bearish days ahead and investors could witness bumpy days. Till now as the crypto market has followed that of stock, the month of September could be challenging.
Till now the year 2022 has seen Bitcoin trading mostly based on Federal Reserve and central bank’s interest rate hikes, but this momentum was considered necessary to curb the increasing inflation rates.
While the price of Bitcoin fell by more than 60% this year, Ethereum achieved a rise in recent weeks. The valuation of ETH has recently increased in expectation of the merger.