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Bitcoin, Crypto Markets Rise as CPI Data Shows Reversal in Peak Inflation

Crypto traders are celebrating a much-anticipated Federal Reserve report that shows a significant reversal in the inflation indicates.
The consumer price index (CPI) shows a year-on-year increase in inflation of 8.5% in July, compared to 9.1% in June.

With inflation still raging, markets around the world are excited by the prospect that high prices have peaked and are finally beginning to recede.

Macroeconomist and crypto bull Raoul Pal believes this is the start of a long-term reversal.

Pal predicts inflation will fall sharply over the next 18 months as worries about inflation turn into the reality of recession, forcing the Fed to change course on rate hikes cryptocurrencies and put stocks under pressure.

investment tip Bitcoin, Crypto Markets Rise as CPI Data Shows Reversal in Peak Inflation, Crypto Trading News

“Peak inflation is giving way to fear of peak growth. I think markets will react positively to weak growth, not negatively, broadly speaking.”

BitMEX founder Arthur Hayes agrees, predicting that Fed Chair Jerome Powell will change course and initiate a market reversal.

To you, Sir Powell, you know what to do.

  • Arthur Hayes (@CryptoHayes) August 10, 2022

Hayes is particularly bullish on that Ethereum (ETH)as the platform’s long-awaited move to proof-of-stake draws nearer and developers are targeting a September launch date.

But not everyone is optimistic. The pseudonymous crypto trader Capo, who is one of the few to bear market of 2022 correctly predicted believes that Bitcoin (BTC) could hit a wall at $25,500 and start a massive reversal.

Potential reversal point at 25000-25500, by CPI.

  • il Capo Of Crypto (@CryptoCapo_) August 10, 2022

Ethereum is trading at $1,843 at press time, up 9.3% over the past 24 hours.

Bitcoin tests the psychological Resistance at $24,000, with the top cryptocurrency up 4% to $23,995.

The Fed’s regional manufacturing surveys are about a week from the release of the CPI data. These figures are intended to provide an indication of how economic activity is developing at a local and more detailed level.

Featured Image: Shutterstock/Lerbank-bbk22/Sensvector

Source: Crypto News Deutsch

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