The post Bitcoin Stays Strong Amid Economic Turmoil: What’s Behind It? appeared first on Coinpedia Fintech News
As global markets experience turbulence due to higher-than-expected CPI inflation data, Bitcoin stands out with its resilient performance. Despite a sharp correction in traditional markets, the cryptocurrency remains stable, drawing support from sector-specific factors and heightened anticipation of the upcoming April halving event.
Expert’s Take on Bitcoin’s Strength
Facing a significant correction on Wall Street triggered by a robust U.S. inflation report, Bitcoin showcases remarkable resilience. Market analyst Tony Sycamore from IG Australia Pty acknowledges this stability but suggests a potential 10% correction, envisioning Bitcoin dipping below $40,000.
Bitcoin finds support from the introduction of dedicated U.S. exchange-traded funds (ETFs) led by BlackRock Inc. and Fidelity Investments. Since their trading debut on January 11, these ETFs have collectively attracted around $3.3 billion in net inflows.
Moreover, the imminent Bitcoin halving in April, historically known to spark price appreciation through reduced supply, adds to the positive sentiment. Caroline Mauron, co-founder of Orbit Markets, underscores the halving’s impact, stating:
Santiment Market Outlook
On-chain data provider Santiment notes a shift in sentiment among investors following the recent BTC price reversal. This polarization in sentiment is expected to intensify, potentially leading to significant market fluctuations.
Analysts at Santiment draw attention to a historical trend, suggesting that past Consumer Price Index (CPI) reports have coincided with mid-term turnarounds in the crypto market.
Bitcoin Shows Its Strength
Bitcoin’s ability to withstand global economic turbulence, coupled with the support from institutional players and the upcoming halving, showcases its adaptability. Even if things are unsure for a short time, Bitcoin and the whole crypto market might change in the next few months.