Bitcoin holds $20K as ECB warns inflation may never return to pre-COVID lows

After the June 29 Wall Street opening, Bitcoin (BTC), held steady at $20,000 as Europe’s chief banking officer admitted that the world would “never” return to low inflation.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

Lagarde on inflation: I don’t believe we’re ever returning”

TradingView and Cointelegraph Markets Pro data showed that BTC/USD looked nonvolatile, but precarious because it remained in a narrow range throughout the day.

The United States equity markets were also calm following Asian trading’s recent losses. Meanwhile, central bankers in Europe set the macro tone.

Christine Lagarde (head of the European Central Bank) stated that inflation will remain high indefinitely.

During a press conference held at the ongoing ECB Forum in Sintra (Portugal), she stated that “I don’t believe we’re going back to those periods of low inflation.”

Jerome Powell, Fed Chair, joined her and sounded similar downbeat about the prognosis, promising not to rest until inflation matches the bank’s target of 2%.

“That is our goal, that is what we intend to do. We believe there are many paths to get there, to return to 2% inflation and maintain a strong labor force. He stated that while we believe that we can achieve that goal, there is no guarantee that it will be possible.

Bitcoin bulls defend 2017 top

Bitcoin did not respond to comments. This was two weeks before new U.S. Consumer Price Index data (CPI).

Bitcoin analysts meanwhile were focused on the June monthly close.

Material Indicators, an on-chain analytics resource Material Indicators, hoped for a breakout soon as the monthly candle was almost certain to disappoint.

It stated that bulls were defending the 2017 Top but with only one day left, it would be nearly impossible to print a green Monthly candle.”

“There is still a chance of green on the Weekly. Expecting volatility. Bitcoin will soon explode or fall in some way.

A chart illustrating the order book for major exchange Binance confirms the buy and sale interest in Bitcoin/USD, with a focus on current prices.

BTC/USD order books data (Binance). Source: Material Indicators/Twitter

Cointelegraph reported that June 2022 is already the worst month since 2018.

#Bitcoin is still dependent on this support (also noted in tweets from previous days), but it’s still difficult to see. We need more confirmation (e.g. breaking $20.2K), if we are to see upwards. If support is not sustained, $19.3K will be next. pic.twitter.com/N6atAXrOZ4
— Michael van de Poppe (@CryptoMichNL) June 29, 2022

Corporate investors continue to be roasted by rising prices

MicroStrategy also increased its Bitcoin corporate treasury by purchasing 480 BTC, which was praised by commentators.

Related: Bitcoin Cash users can no longer flex their thumbs as BCH loses 98% to Bitcoin

MicroStrategy’s CEO Michael Saylor and its shareholders were smaller than buy-ins. They were running against claims that MicroStrategy might be liquidated due to a $205million loan for BTC acquisition.

William Clemente, Blockware’s lead insights analyst, stated that although Saylor’s recent purchase of 480 BTC was small, it sent a clear message.

“Despite all the criticisms and claims that he is “liquidated” by bears, he isn’t going anywhere. He’s sticking to his long-term allocation strategies.”

However, MicroStrategy saw a $1.4 billion drop in its inventory when it looked at Bitcoin Treasuries. Tesla was down nearly 50%.

Square, the payment network, also saw a $60 million decrease in its allocation of $220 million.

Screenshot of major publicly traded companies’ BTC Treasury data (screenshot). Source: Bitcoin Treasuriescom. You should do your research before making any investment or trading decision.

https://cointelegraph.com/news/bitcoin-holds-20k-as-ecb-warns-inflation-may-never-return-to-pre-covid-lows