The US Labor Department revealed inflation figures for March 2022 on Tuesday, April 12th, which stood at 8.5%, the highest in four decades since 1982. The crypto market has already awaited this event entering into a steep correction earlier on Monday.
Bitcoin (BTC) and the broader crypto market are displaying a marginal bounce back, just as the inflation numbers were in line with market expectations. Santiment, an on-chain data source reports:
When #inflation and #CPI data releases are major subjects of interest for the #crypto community, price turnarounds generally occur. We’ve seen a decent #crypto bounce today with #consumerprice data revealing a higher than expected 8.5% rise in March.
Bitcoin (BTC) and the Broader Crypto Market
Bitcoin (BTC) is showing strength to maintain above $40,000 levels after a significant fall on Monday. The broader crypto market is up by 2.21% as of press time. BTC has also remained in the green zone over the last 24 hours.
Ethereum (ETH), on the other hand, has made a strong bounceback, rising 2.68%, and is currently trading above $3,000. Furthermore, all of the top ten altcoins are in the green territory with gains ranging from 2 to 5%.
According to crypto expert Lark Davis, the next support for Bitcoin will be at $37,500. If Bitcoin reverses to the north from here, it will signify the formation of higher lows.
However, Davis shares another fascinating trendline with $39,876 acting as a good immediate support level.
For the time being, the U.S. inflation numbers are certainly alarming! This will compel the Fed to take more stringent quantitative tightening measures to raise interest rates faster than projected. As a result, we could be seeing greater volatility in risk-ON assets such as crypto in the coming months.
In the event of extreme Fed measures, BitMEX CEO Arthur Hayes recently predicted that the Nasdaq 100 (NDX) Index could go 10,000 level and even lower. Since crypto closely follows this index, he predicts crypto carnage by June 2022 wherein BTC could be hitting a bottom at $30,000 and ETH could find a bottom at $2,500.