US inflation data from August 10 triggered upward movements in Bitcoin and technology stocks. An important point was that the altcoin market outperformed Bitcoin. The lower-than-expected US CPI data strengthens positive movements, according to analysts.
Bitcoin is preparing for 100 thousand dollars as the altcoin market reaches its peak
A popular analyst believes that the leading crypto could reach ATH levels again, despite losing market share. The server InvestAnswers with 443,000 YouTube subscribers said that 94% of altcoins currently outperform Bitcoin. The analyst adds that once the dominance has reached saturation, BTC is ready to rise again:
When 75% of the top 50 cryptocurrencies outperform Bitcoin in the last 90 days, it becomes alt season and we are well above 75%, which is pretty amazing. But it is going down regardless, so we can expect BTC.D to be bullish again soon. We’re already seeing this happen as we speak right now… so expect everything to be choppy as you move forward.
The BTC.D chart tracks how much of the total crypto market capitalization belongs to Bitcoin. A rising value is a sign that Bitcoin is rising faster than any other crypto or altcoins are depreciating. The analyst then discusses the $100,000 estimate made by Bloomberg’s senior commodity strategist Mike McGlone.
Mike McGlone keeps his $100,000 Bitcoin predictions up to date
McGlone believes that falling prices will push oil below $50 per barrel, and in turn, worldwide deflationary pressures will push gold above $2,000 per ounce and also push the price of Bitcoin to $100,000. The InvestAnswers host has this to say about McGlone’s prediction:
Here I’ve included some extension lines on how the possible path could be to $100,000. When can we go there? Maybe by the summer of 2023. Who knows? It will look something like this. But first, we have to go back to all-time highs.
Edward Moya predicts Bitcoin could reach $35,000 by the end of the year as inflation cools
As you follow on Kriptokoin.com, US CPI data came in lower than expected on Wednesday. It recorded an annual price increase of 8.5% in July. Prices did not change compared to the previous month and were below expectations.
“Inflation data and Fed statements for the rest of the summer will determine where Bitcoin will go,” says Edward Moya, senior market analyst at Oanda. Speaking to Fortune, Moya also commented on the Fed’s monetary policy:
Bitcoin is currently heavily correlated with stocks, especially the Nasdaq. And this inflation report gave great hope to the idea that the Fed would not need to be so aggressive in its tightening policy going forward.
Finally, the CIO of Starkiller Capital said that rising interest rates are causing serious pressure on the cryptocurrency market. According to Leigh Drogen, who stated that cryptocurrencies are long-term assets, the Fed meeting in September will be very important. The senior investor says that if Bitcoin can break out of the current trading range, the initial targets are $28,000 and then $32,000. According to the expert, while the dollar depreciates, the Nasdaq will rise.
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