This One Metric Will Start The Potential of Bitcoin Bounce, Says Analyst Tyler Swope
In the recent video, top trader Tyler Swope from Chico Crypto shares reasons behind the recent Bitcoin (BTC) price crash and highlights an important metric that will flip BTC price.
“Well the markets were preparing for some BIG things,”
The trader explains that the “BIG things” include Grayscale’s GBTC Bitcoin unlock, and importantly, a macroeconomic factor, outside of Bitcoin: the CPI (Consumer Price Index) data that could be coming out.
“The June reading comes out tomorrow, and expectations are a 0.5% increase which would keep the unadjusted 12 months at about 5%….The last time we reached 5 percent yearly inflation was back during the financial crisis of 2008, specifically in the same month we are in right now, July.”
According to the trader, the recent price volatility of Bitcoin is because the markets are scared that if the numbers come out higher than that 0.5 percent expectation, the FED is going to step in to raise interest rates, meaning that there would no more free money for institutions and Wall Street. Which some of that money trickles into the crypto markets, there is no denying that.
“Which means, short term bad for Bitcoin…. And Bitcoin as an asset is getting hit from every corner with BAD News. Tesla no longer likes it, it’s too energy-intensive, China bans what keeps the network running, the mining of the asset with proof of work.”
However, at the end of the video, the analyst strongly highlights that this price fluctuation is just for short term and Bitcoin is still doing well as miners are relocating to Kazakhstan and the U.S.
“Bitcoin was made to fight fiat inflation! If hyperinflation arrives within the US…BTC will skyrocket!”