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06/12 14:19

Bitcoin (BTC) extended its losses despite favorabl

Bitcoin (BTC) extended its losses despite favorable Consumer Price Index (CPI) numbers, as the flagship cryptocurrency fell below $108,000. BTC is down nearly 1%, trading around $107,697. BTC started the week on a bullish note, surging past $110,000 on Monday. However, it lost momentum in subsequent sessions, slipping below $110,000 on Wednesday to settle at $108,687. While BTC is trading in the red, analysts believe the asset is entering a period of volatility before a short-term rally to $111,000, thanks to several macroeconomic factors. 

These factors include a potential breakthrough in US-China trade talks, and softer-than-expected inflation numbers, which could support a rally. Jag Kooner, Head of Derivatives at Bitfinex, believes a possible agreement between the global economies could reduce market uncertainty and boost investor sentiment. However, he pointed out that the market could have already priced in a potential breakthrough, indicating a limited price impact. 

Kooner believes the most likely short-term effect will be increased volatility. The same applies to CPI numbers. According to Kooner, these developments suggest BTC could be preparing for a significant rally. 

“Core CPI up 0.1% m/m firms up rate cut bets, compresses real yields, and creates a vacuum above $111K for bitcoin. That move would likely be spot-driven, with ETF demand accelerating as the macro regime shifts toward easing.”

Bitfinex analysts believe BTC could reach $111,000 despite heightened volatility and a substantial decline to below $108,000 this week. According to Kooner, soft inflation numbers could increase the likelihood of a rate cut, giving assets like BTC a boost. The Bitfinex analyst believes this could drive the price to $111,000 even though its upside depends on the performance of the S&P 500.

“BTC’s tight correlation with the S&P 500 (30D r ~0.63) reveals its current role as a liquidity barometer rather than a volatility hedge. This correlation makes BTC highly sensitive to SPX range-bound conditions, and until the index breaks out, BTC’s upside remains constrained.”

BTC started the previous week with a drop to $103,768 as selling pressure took hold. However, it rebounded from this level to register a marginal increase and move to $105,902. The price lost momentum on Tuesday, falling 0.44% to $105,435. Sellers retained control on Wednesday as BTC fell almost 1%, slipping below $105,000 and settling at $104,752. Selling pressure intensified on Thursday as BTC fell 3%, dropping to a low of $100,424 before settling at $101,614. Bullish sentiment returned on Friday as the price rose almost 3% and settled at $104,378.



BTC remained positive over the weekend, rising .15% on Saturday and 0.20% on Sunday to reclaim $105,000 and settle at $105,784. Bullish sentiment intensified on Monday as BTC rallied, rising over 4% to surge past the 20-day SMA and $110,000 and settle at $110,251. The price fell to a low of $108,335 on Tuesday but recovered to reclaim $110,000 and settle at 110,253. Price action turned bearish on Wednesday as BTC fell 1.42%, slipping below $110,000 and settling at 108,687. The current session sees BTC down over 1%, trading around $107,483. If bearish sentiment persists, BTC could drop to $105,000. A bearish MACD suggests buyers have the upper hand. 

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