Connect with us

Published

on

Bitcoin price is down today after new U.S. inflation data has investors wondering about how long the Feds interest rate hikes will last. 70604 Total views 137 Total shares Listen to article 0:00 Markets News Own this piece of history

Collect this article as an NFT The bullish momentum that propelled Bitcoin (BTC) price to a 2023 high of $25,000 initially on Feb. 16 and Feb. 20 appears to have waned. The pause in bullish momentum appears connected to higher-than-expected U.S. inflation data, the possibility of the Federal Reserve continuing higher interest rate hikes and large amounts of long liquidations.

The contraction in Bitcoin price follows a market-wide decline, and analysts fear that the crypto market continues to face considerable danger from the the United States Federal Reserves interest rate decisions.

Lets take a closer look at the factors impacting Bitcoin price today.Stocks drop on high inflation data

Stocks and Bitcoin tumbled after the Bureau of Economic Analysis (BEA) released the Personal Consumption Expenditures (PCE) report on Feb. 24 which showed inflation rising 5.4% in January compared to the previous year. Core inflation, which is one of the Federal Reserves favorite tools to gauge inflation, was up 4.7% compared to January 2022.PCE price index. Source: BEA

While the correlation between Bitcoin and stocks hit its lowest level since 2021 on Feb. 22, Bitcoin price remains closely correlated to equities and the stock market. Investors have previously expressed strong concerns about a potential upcoming recession in the U.S. economy.Bitcoin, Dow Jones Index, Nasdaq, and S&P 500. Source: TradingView

While some analysts believe Bitcoins current price represents a generational buying opportunity at current levels, others believe BTCs close correlation to the U.S. dollar index (DXY) and equities is reflected by the price weakness to retain the $24,000 level.

Bitcoin price is reacting to the markets consensus expectation that inflation is not yet under control which will lead the Federal Reserve to continue raising interest rates. Rising interest rates in the U.S. and abroad weigh on Bitcoin price

The PCE report is the Federal Reserves favorite tool to gauge inflation. And with Federal Reserve Chairman Powell still aiming to reach 2% overall inflation, further interest rate hikes are expected. Inflation has been a determining factor in raising interest rates. In order to combat inflation, Chairman Powell may not be able to pivot the aggressive rate hike strategy.

The PCE report is leading the market to speculate that a 0.5% interest rate hike is possible at the FOMC meeting on March 22.Rate increase probability. Source: CME Group

On the back of persistently sticky inflation, some analysts believe Bitcoin is in for a cold winter and the price could continue to see volatility leading into the FOMC.

On Feb. 24, in a span of 5 hours, over $95 million in Bitcoin longs were liquidated. When BTC longs are liquidated without buy pressure from trading volume, Bitcoin price is negatively affected. While Chinas recent monetary easing injected $92 billion in liquidity to the Chinese economy, it did not stop BTC longs from being liquidated.BTC liquidations. Source: CoinglassIs there a chance for Bitcoin price to reverse course?

On Jan. 23 and Jan. 24, the Bitcoin futures market saw $230 million in liquidations on long positions. This put further pressure on BTC price. When BTC longs are liquidated without buy pressure from trading volume, Bitcoin price is negatively affected. Real BTC-USD Daily Volume. Source: Arcane Research

Related: Bitcoin 2024 halving will be its most important Interview with Charles Edwards

The recent uptick in Bitcoin trading volume could be because of Binances removal of trading fees. Vetle Lunde, senior analyst at Arcane Research presumed from data that:However, volumes are still concentrated on Binance following Binances removal of tradingfees. Volumes on the other spot exchanges sit below the peaks from January at $680m, asBinances volume still represents 95% of the daily BTC spot volume.

If this is the case, that means there is not a large cushion of buy pressure for Bitcoin long liquidations leading to further downside. And with recent Securities and Exchange Commission (SEC) actions against Binance, more assets are flowing from exchanges.

The short-term uncertainties in the crypto market do not appear to have changed institutional investors’ long-term outlook. According to BNY Mellon CEO Robin Vince, a poll commissioned by the bank found that 91% of institutional investors were interested in investing in tokenized assets in the following years.

CME, a leading tool for institutional investors to gain Bitcoin exposure, has seen its dominance grow in 2023. Open interest in CMEs Bitcoin future has grown by 8,000 BTC since Feb. 17.CME BTC futures open interest. Source: Arcane Research

Data shows CME BTC options also representing a majority of Bitcoins open interest.

Futures premiums are rising.

CME's basis sits at 8.7%, the highest since Nov 2021, trading at a premium to offshore futures' 6.3%.

CME also accounts for 68.2% of the BTC futures market, excluding perps. The futures dominance offshore has fallen steadily throughout the year. pic.twitter.com/wxxiCJNh9H— Vetle Lunde (@VetleLunde) February 24, 2023

In the short term, worries are high with Bitcoin price being directly impacted by macroeconomic events, and it is also likely that potential rate hikes at the next FOMC is also having some effect on BTC price.

In the long term market participants still expect the price of Bitcoin to go up, especially as more banks and financial institutions are seemingly turning to digital cash for settlement purposes even amidst the chaos.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. #Bitcoin #Cryptocurrencies #Altcoin #Federal Reserve #Central Bank #Bitcoin Price #Bitcoin Regulation #Markets #Cryptocurrency Exchange #Interest Rate #BTC Markets #Interest Rates

Add reaction

Add reaction Related News Cointelegraph 2023 Top 100: Diving into the top 10 Why is Bitcoin price up today? Data shows pro Bitcoin traders want to feel bullish, but the rally to $23K wasnt enough Bitcoin aims for $25K as institutional demand increases and economic data soothes investor fears Bitcoin price correction was overdue analysts outline why the end of 2023 will be bullish

Continue Reading

Entertainment

Russell Brand charged with rape and sexual assault

Published

on

By

Russell Brand charged with rape and sexual assault

Russell Brand has been charged with rape and two counts of sexual assault between 1999 and 2005.

The Metropolitan Police say the 50-year-old comedian, actor and author has also been charged with one count of oral rape and one count of indecent assault.

The charges relate to four women.

He is due to appear at Westminster Magistrates’ Court on Friday 2 May.

Police have said Brand is accused of raping a woman in the Bournemouth area in 1999 and indecently assaulting a woman in the Westminster area of London in 2001.

He is also accused of orally raping and sexually assaulting a woman in Westminster in 2004.

Please use Chrome browser for a more accessible video player

Ashna Hurynag discusses Russell Brand’s charges

The fourth charge alleges that a woman was sexually assaulted in Westminster between 2004 and 2005.

Police began investigating Brand, from Oxfordshire, in September 2023 after receiving a number of allegations.

Read more from Sky News:
Mum spared prison after son’s death
Last UK blast furnaces days from closure
Ship owner files legal claim after North Sea crash

The comedian has denied the accusations and said he has “never engaged in non-consensual activity”.

He added in a video on X: “Of course, I am now going to have the opportunity to defend these charges in court, and I’m incredibly grateful for that.”

Metropolitan Police Detective Superintendent Andy Furphy, who is leading the investigation, said: “The women who have made reports continue to receive support from specially trained officers.

“The Met’s investigation remains open and detectives ask anyone who has been affected by this case, or anyone who has any information, to come forward and speak with police.”

Continue Reading

Sports

O’s Henderson off IL; will make ’25 debut vs. KC

Published

on

By

O's Henderson off IL; will make '25 debut vs. KC

Baltimore Orioles All-Star shortstop Gunnar Henderson was activated from the 10-day injured list and will make his season debut Friday night against the Kansas City Royals.

Henderson has been sidelined with a right intercostal strain and missed the first seven games of the big league campaign.

The 23-year-old Henderson will lead off and play shortstop against the host Royals.

Henderson was injured during a spring training game Feb. 27. He was fourth in American League MVP voting last season when he batted .281 and racked up career bests of 37 homers and 92 RBIs.

Henderson completed a five-game rehab stint at Triple-A Norfolk on Wednesday. He batted .263 (5-for-19) with two homers and four RBIs and played four games at shortstop and one as the designated hitter. He did commit three errors.

“I think everybody’s looking forward to having Gunnar back on the team,” Baltimore manager Brandon Hyde said Thursday. “The rehab went really, really well. I talked to him a couple days ago, he feels great swinging the bat. The timing came, especially the last few days. He just had to get out there and get some reps defensively and get some games in, and it all went well.”

Baltimore optioned outfielder Dylan Carlson to Triple-A Norfolk to open up a roster spot. The 26-year-old was 0-for-4 with a run and RBI in two games this season.

Continue Reading

Politics

‘Will the PM side with parents or tech bros?’: Labour peer demands action on children’s smartphone safety

Published

on

By

'Will the PM side with parents or tech bros?': Labour peer demands action on children's smartphone safety

Sir Keir Starmer needs to choose between parents who want stronger action to tackle harmful content on children’s phones, or the “tech bros” who are resisting changes to their platforms, Baroness Harriet Harman has said.

Speaking to Beth Rigby on Sky News’ Electoral Dysfunction podcast, the Labour peer noted that the prime minister met with the creators of hit Netflix drama Adolescence to discuss safety on social media, but she questioned if he is going to take action to “stop the tech companies allowing this sort of stuff” on their platforms where children can access it.

Sir Keir hosted a roundtable on Monday with Adolescence co-writer Jack Thorne and producer Jo Johnson to discuss issues raised in the series, which centres on a 13-year-old boy arrested for the murder of a young girl, and the rise of incel culture.

Politics latest: Could the UK retaliate against Trump?

The aim was to discuss how to prevent young boys being dragged into a “whirlpool of hatred and misogyny”, and the prime minister said the four-part series raises questions about how to keep young people safe from technology.

Sir Keir has backed calls for the four-part drama to be shown in all schools across the country, but Baroness Harman questioned what is going to be achieved by having young people simply watch the show.

Please use Chrome browser for a more accessible video player

Sir Keir Starmer held a roundtable with the creators of the Adolescence TV drama.

“Two questions were raised [for me],” she said. ” Firstly – after they’ve watched it, what is going to be the discussion afterwards?

More on Electoral Dysfunction

“And secondly, is he going to act to stop the tech companies allowing this sort of stuff to go online into smartphones without protection of children?

“Because if the tech companies wanted to do this, they could actually protect children. They can do everything they want with their tech.”

She acknowledged there are “very big public policy challenges” in this area, but added of the prime minister: “Is he going to side with parents who are terrified and want this content off their children’s phones, or is he going to accept the tech bros’ resistance to having to make changes?”

Harriet Harman said the government should impose time limits on inquiries
Image:
Baroness Harriet Harman

👉 Click here to listen to Electoral Dysfunction on your podcast app 👈

Can parliament keep up?

The Labour peer backed the Conservative Party’s call for a ban on smartphones in schools to be mandated from Westminster, saying it would “enable all schools not to have a discussion with their parents or to battle it out, but just to say, this is the ruling” from central government, which Ofsted would then enforce.

“I’m sensitive to the idea that we shouldn’t constantly be telling schools what to do,” she continued. “And they’ve got a lot of common sense and a lot of professional experience, and they should have as much autonomy as possible.

“But perhaps it’s easier for them if it’s done top down.”

Baroness Harman also questioned the speed with which parliament is actually able to legislate to deal with the very rapid development of new technologies, and posits that it could “change its processes to be able to legislate in real time”.

She suggested that a “powerful select committee” of MPs could be established to do that, because “otherwise we talk about it, and then we’re not able to legislate for 10 years – by which time that problem has really set in, and we’ve got a whole load more problems”.

On the podcast, the trio also discussed the 10% tariffs imposed on the UK by Donald Trump and the government’s efforts to strike a trade deal with the US to mitigate the impact of the levy.

The government has refused to rule out scrapping the Digital Services Tax, a 2% levy on tech giants’ revenues in the UK, as part of the negotiations with the Trump administration – a move Baroness Harman said would be “very heartbreaking”.

👉 Click here to listen to Electoral Dysfunction on your podcast app 👈

Continue Reading

Trending