Bitcoin showing signs of calm before inflation data due this week

13 Jul 2021

???? BTC | $32,949 (-1,169, -3.4%)

???? ETH | $2,024 (-103, -4.8%)

???? XRP | $0.628 (-0.004, -0.7%)

???? LTC | $133 (+0, +0.1%)

US CPI data (consumer prices) is due later today. Bitcoin is trading lower ahead of the data release, while spot gold prices have risen slightly. Bitcoin may be setting up for a repeat performance where it fell in May over “inflation fears”, a puzzling narrative given its common promise of acting as an inflation hedge.

Bitcoin has traded between $35.1K and $32.2K over the past week, a relatively tighter trading band than in previous weeks. Lower volumes have also been seen across the derivatives market and in on-chain metrics.

Bitcoin miners are coming back online, with the worst of the network hash-rate drop being over. However this may suggest larger selling pressure on the apex cryptocurrency in the near-term, as returning miners sell more of their mined Bitcoin to run their mining operations.

On the other (non-bearish) paw, Bitcoin exchange outflows have been rising strongly, traditionally either suggesting that Bitcoin has hit an area of support, or as a bullish indicator.