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The price of bitcoin is gradually recovering amid new signs of slowing inflation in the United States.
Last week, the cryptocurrency market experienced pressure related to the bankruptcy of the FTX exchange-an event comparable to the Mt. Gox and Terra.
According to the Cryptovizor cryptocurrency screener, which determines the market price of BTC / USD based on the results of trading on the largest spot exchanges, today the asset price has confidently risen above $17,000.
4-hour BTC/USD chart.
Thus, bitcoin successfully survived one of the most dangerous incidents in its history and, apparently, got off well. Amsterdam Stock Exchange trader Michael van de Poppe (Michael van de Poppe) wrote about this on Twitter:
FTX collapsed, and bitcoin is trading at $17,000. But it could have fallen to $10,000.
The recovery of the cryptocurrency market today was helped by the US Bureau of Labor Statistics, which published data on the producer price index (PPI). On an annualized basis, this index was 8% against the forecast of 8.3%. These data are perfectly combined with the October consumer price index (CPI), which also turned out to be below expectations. All this together points to a slowdown in inflation in the United States and may well serve as a reason for the Federal Reserve to ease its tight monetary policy.
However, some analysts took this news with skepticism. Among them is Venturefounder, who informed his Twitter followers:
The market is growing on the news, perhaps inflation has already peaked, but I think the worrying news is that after a record quantitative tightening (QT) for almost a year, the producer price index is still at 8%.
Along with bitcoin, the US stock market also rose: the S&P 500 (SPX) and Nasdaq Composite indexes rose by 1.7% and 2.4%, respectively. Meanwhile, the already weakened US dollar Index (DXY) fell below 105.5, its lowest level since mid — August.
A well-known trader on Twitter, Bloodgood, interpreted the current situation as follows:
I've been following the bitcoin chart for several months. In my opinion, the accumulation phase has reached the bottom, and I have something to add. SPX shows strength and DXY crashes-an ideal situation to realize its growth potential.
The trader published a chart showing that bitcoin is now reproducing its behavior during the previous bear market. If this is the case, then the price has already reached the minimum value, and we expect growth. This could happen in December if the US Federal Reserve raises rates by less than 0.75%.
