The twelfth month of the year is yet to bring goodies for the crypto market. Which has been trembling in the wintry month. The market cap of the crypto street is currently down by 0.9%, at $2,352,981,790,325. While the volume of trades for 24-hours are at $123,133,910,311.
The paradoxical market cycle has hampered the price projections to a gargantuan extent. Wherein digital assets from the market have shed down considerable gains. The release of the Consumer Price Index by the U.S Bureau of Labor Statistics has put the cryptos at jeopardy. However, veterans are optimistic of the industry staying true to its words in the long run.
Is Inflation Inevitable?
The U.S Bureau of Labor Statistics have released the updated numbers for its inflation tracking Consumer Price Index. The CPI that illustrates the inflation rate of the United States rose to a forty years high of 6.8% in November. Which has been the highest year-on-year since 1982.
The release of inflation statistics have taken a toll on the star crypto. As the price of BTC slid from its crucial levels around $49,600 to $48,300. Bitcoin is currently trading around the same bandwidth at $48,442.57. A proponent from the crypto industry, edifies that BTC price has been trading south that could plunge deeper in near future.
He further mentions that last week’s economic numbers from the U.S led the price of BTC to lose the support level at $53,500 from where the price took a nose dive to levels around $49,600. The inflation numbers have persuaded price rejection at $49,600. Meanwhile, several altcoins are down from their ATH of March/May by levels around 60-80%. While some that have been doing well are testing levels.
Where Are Top-Tier Digital Coins Heading?
The high inflation numbers have not been bullish for the crypto market, as the digital assets have not yielded the desired gains. The analyst mentions that from the lower time frames, BTC has been trading south since the rejection at $51,600. He believes that levels around $49,000 and $49,600 should be looked for.
Meanwhile, a rejection at $49,000 would take BTC price to $46,500. The bullish target should be at $51,600, prior to $53,000. On the other hand, the ETH/BTC pair has been showing strength despite the corrections. The proponent believes that ETH needs to sustain the crucial area between 0.077023 and 0.082 SATS. He also mentions that he would rather buy than sell, despite the heavy corrections in the market.
Collectively, although the inflation remarks have hindered the price trajectories of the digital assets which have been sailing the rough tides. We can expect the cryptos seizing the opportunity in the near future. As the fear and greed index is at extreme fear, which is a buy signal. Moreover, the exchange reserves have been depleting as well.