Bitcoin (BTC): what lies ahead?

TL;DR

Bitcoin may experience an upcoming price correction due to ongoing inflation in the United States.
The cryptocurrency market has surged by more than $100 billion in volume in the past 24 hours.
Cryptocurrency miners have previously plunged the price of BTC to 19k.


There are indications that inflation in the United States will persist, leading to a potential correction in Bitcoin prices before the next Federal Open Market Committee (FOMC) meeting. Although some data suggest that the Consumer Price Index ( CPI ) may decline, inflation is expected to continue longer than expected.

Today's release of the Producer Price Index ( PPI ) report is expected to confirm this trend, leading to a shift in market sentiment toward a potential interest rate hike of 25 or 50 basis points.

The cryptocurrency market has surged more than $100 billion in the past 24 hours, likely due to turmoil in the U.S. banking sector following the collapse of three major banks. Bitcoin ( BTC ) hit a nine-month high of $26,500 on Tuesday, rebounding from the previous week's drop below $19,000.

CryptoQuant, a leading data analytics firm, attributed the previous week's sharp drop to a reduction in reserves by miners, which has put a strain on Bitcoin .

Ethereum (ETH), BTC's main competitor, also suffered significant losses and fell to around $1,370. However, ETH has since recovered from the slump and is currently trading at $1,638.