Bitcoin trader predicts $18K return within days as stocks wilt post-CPI
cointelegraph.comBitcoin (BTC) cooled near $19,200 after the Oct. 14 Wall Street open as stocks struggled to preserve their “bear trap.”
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it came off one-week highs on the day to circle $19,300.
The pair had seen intense volatility on the back of United States economic data the day prior, this sparking hundreds of millions of dollars in liquidations from both long and short positions.
Now, after turning the tables and adding almost $2,000 in 24 hours, Bitcoin was again losing momentum as U.S. equities turned red on the day.
At the time of writing, the S&P 500 was down 1.9%, while the Nasdaq Composite Index traded a gruesome 5.4% lower.
Investigating the status quo, Alasdair Macleod, head of research at Goldmoney, pointed to rampant gains in long-dated U.S. bonds as a key factor in the pressure being felt across markets.
“US Try bond yields continue to soar,” he commented.
The U.S. dollar index, a classic headwind maker for risk assets, made strong progress on the day, passing 113.4 before consolidating.
With the September Consumer Price Index (CPI) print released, sentiment was now overwhelmingly leaning toward the Federal Reserve enacting a further 75-basis-point rate hike in November.
According to CME Group’s FedWatch Tool, the odds of a lower 50-point hike were just 2.1% as of Oct. 14.
Macleod meanwhile noted that even under existing dollar strength, major world currencies were showing increasing strain, among them the Japanese yen and, increasingly, the Chinese yuan. The former traded at its lowest versus the U.S. dollar in 34 years on the day.
Planning ahead, Bitcoin analysts continued to favor downside regaining control of short-term BTC price action.
Related: Bitcoin bear
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