Prosper Trading Academy CEO Scott Bauer believes that Bitcoin will move this year from 30 before 50 depending on inflation and Fed policy.
After Bureau of Labor Statistics (BLS) announcement February that inflation was the fastest since February 1024 and exceeded economists’ forecasts in 7.3%, the bitcoin market fell by 1.9% within minutes.
The situation was aggravated by the statement of the US Federal Reserve System (FRS), which, after the BLS report, warned of an imminent change in credit policy.
“With inflation well above 2% and a strong labor market, the committee expects it will soon be appropriate to raise the target range for the federal funds rate “.
At the same time, Prosper Trading Academy CEO Scott Bauer believes that investors in cryptocurrencies should not be afraid of inflation yet.
“Inflation still has less of an impact on the price of bitcoin than other speculative factors.”
Bauer acknowledges that the recent price action in the Bitcoin market was partially affected by inflation data and the potential for higher interest rates.
“The Fed will not be as aggressive as some say. I don’t think we’ll get seven or eight rate hikes. I don’t think we’ll get a raise by in March basis points.”
According to him, bitcoin at 2022 year will move in the range $10 -$50 000 depending on the stock market and Fed policy. Bauer believes that bitcoin is more likely to 20/000 will move up.
Data provided by the Bureau of Labor Statistics 10 February, really not comforting. In the report, the BLS said the consumer price index (CPI), the most commonly used indicator for tracking inflation, rose in January, the fastest since February 1982 of the year and exceeded economists’ forecasts by 7.3%. The core consumer price index, which measures price movements excluding food and energy as they tend to be more volatile, rose to 0.6% mom, at the same pace as in December. Against this background, the yield of -year Treasury US bonds exceeded 2% for the first time since 2019 system Jerome Powell acknowledged that inflation will drag on.