Bitcoin (BTC) held steady just above $20,000 after Wall Street opened on June 29, as Europe’s chief banker admitted the world would “never” see low inflation again.
Lagarde on inflation: “I don’t think we’ll ever go back”
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair looked low in volatility but precarious as it remained in a tight range on the day.
US equity markets were also quiet after Asian trading posted further losses. In Europe, meanwhile, comments from central bankers set the macro tone.
In particular, Christine Lagarde, head of the European Central Bank (ECB), seemed to claim that inflation will remain high indefinitely.
“I don’t think we’re going to go back to that period of low inflation”he said during a press conference at the ECB Forum being held in Sintra (Portugal).
Joining her was Fed Chairman Jerome Powell, who sounded similarly dovish about the forecast, while also vowing not to rest until inflation reached the bank’s 2% target.
“That’s our goal, that’s our intention, we think there are several paths to get there, to get on the path back to 2% inflation while maintaining a strong labor market. We think we can do it, that’s our goal, there’s no guarantee that we can do it”said.
Bitcoin Bulls Defend 2017 Top
Bitcoin did not respond to the comments, which preceded new US Consumer Price Index (CPI) data by about two weeks.
For Bitcoin analysts, meanwhile, the focus was on the June monthly close.
On-chain analysis resource Material Indicators was forecasting a breakout now “very soon” as the monthly candlestick was almost doomed to disappoint.
“There is still a chance of green numbers in the week. Waiting for volatility. One way or another, Bitcoin is going to go up or down very soon.”
An attached chart showing the order book of major exchange Binance confirmed the buying and selling interest in the BTC/USD pair focusing right on current prices.
As Cointelegraph reported, June 2022 was already on track to be the worst month since 2018.
#bitcoin resting on support here (also marked in tweets previous days), but still looking tricky.
Needs more confirmation (for instance breaking $20.2K) if we want to look upwards.
If support doesn’t hold, $19.3K area next. pic.twitter.com/N6atAXrOZ4
— Michael van de Poppe (@CryptoMichNL) June 29, 2022
Bitcoin is resting on support here (also flagged in previous days’ tweets), but it still looks tricky.
It needs more confirmation (eg break $20,200 level) if we are to look up.
If the support fails to hold, the $19,300 zone is next.
Prices keep pummeling corporate investors
On the other hand, MicroStrategy increased its corporate Bitcoin treasury with a new purchase of 480 BTC, a move praised by commentators.
Smaller compared to some purchases, MicroStrategy and its CEO, Michael Saylor, were confronted with claims that the company could be liquidated over a $205 million loan taken out for the acquisition of BTC.
“Although this recent 480 BTC purchase from Saylor may be relatively small, I think it sends a message more than anything,” reacted William Clemente, Principal Insights Analyst at Blockware.
“Despite all the criticism and claims from the bears that he’s being ‘liquidated’, he’s not going anywhere and sticks to his long-term allocation strategy.”
A look at Bitcoin Treasuries resource monitoring, however, showed MicroStrategy down a total of $1.4 billion in inventory, with number two being Tesla down nearly 50%.
The Square payments network also continued to drop $60 million on its $220 million allocation.
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