Inflation data is expected in July, which the crypto community expects would significantly impact the macroeconomic environment in the US this year and the value of crypto assets.
The public will receive the (CPI) data and inflation details for the following months on July 13th. The bulls have already begun speculating on the future of Bitcoin. Lark Davis, who never holds back in voicing his opinions, just stated in his most recent video that July 13th would determine whether Bitcoin survives or withers away.
Davis discussed that the focus should be on some of the crucial events that are now taking place in the Bitcoin market and why people should pay close attention to the short-term trends.
How do Inflation Impact BTC Prices?
Davis believes macroeconomic developments will be the primary reason that July will be harrowing for Bitcoin.
He hasn’t given up hope for the future, though. For instance, the cost of commodities (such as wheat and oil) has begun to fall sharply.
A ripple effect is generated through such developments. According to Davis, a market rally is likely if inflation numbers drop and the Fed only increases rates by 0.5% rather than 0.75 percent. Nevertheless, he advised the market to brace itself for unfavorable circumstances that could be coming our way.
Bitcoin and the US Dollar
Davis pointed out that BTC never ended a weekly candle below the 200-week moving average, but sadly, it has happened. Additionally, there has never been a rougher month-to-month candle, with Bitcoin ending the month roughly 40% lower than when it occurred last month. June 2022 stands firm as being the worst month for cryptocurrency.
In his perspective, the 200-day moving average, which he refers to as the “bowl bear line,” is comparable to a bear and a coma line, and the trend is on the coma side of that equation. So, according to him, it is pretty intriguing to note that the trend line is moving in these two averages.
You can see on-chain data like this, demonstrating that both long- and short-term holders suffer significant losses due to the Bitcoin price floor model, which has reached the bottom.
Another point he made was that there is a direct correlation between Bitcoin and the dollar, so as one falls, the other falls.
He warned the investors about previous losses that have historically coincided with bear market bottoms.
All in all, the market is coming across as highly strange and confusing. A solid recovery seems impossible at the moment, and traders are advised to invest their money after doing considerable research and planning.
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Source: https://coinpedia.org/opinion/whats-in-store-for-crypto-market-on-july-13th/