Bitcoin spoofs $40K breakout as US CPI inflation data conforms to 7.9% estimates

Bitcoin (BTC), which was last seen in February, reverted to February 10th when the U.S. inflation data caused a bout volatility.

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

Bitcoin gets a run for its dough with wheat

Cointelegraph Markets Pro and TradingView data showed that BTC/USD strongly reacted to February’s Consumer Price Index, (CPI), readout.

The print was able to match forecasts at 7.9%. Bitcoin’s reaction was smaller than last month’s, with a breakout above $40,000, followed by a trip down to 24-hour lows.

Bitcoin was trading at the exact same spot it traded before the event as at the time of writing.

“High inflation numbers call for faster hikes, potential QT, quantitative tightening and a stronger dollar. This will result in people selling their risk-on investments and a stronger Dollar. Michael van de Poppe, a Cointelegraph contributor, summarized the short-term response.

“The inflation at this level is not great.” Long-term though; Bitcoin.”

In the meantime, Wall Street trading did not make any significant changes to the status quo in the short-term.

At the time of writing, the S&P 500 was 0.6% lower, with burgeoning commodity markets — including oil and wheat — still at the center.

Pentoshi, a popular trader, joked that wheat was everything BTC wanted to become and more.

You can trade and keep a lightweight global reserve currency or inflation hedge in your pocket. What are you doing with your life if you don’t go to the local grocery and buy all of your Wheaties?

1-Day Candle Chart for Wheat CFDs Source: TradingView

March 16th was the due date for the U.S. Federal Reserve to announce that it had raised its base rate.

“Economy depends on energy for its survival. Energy prices are on the rise with no relief in sight,” Material Scientist, who created Material Indicators as a monitoring resource, said.

“Therefore, the economic output (GDP), has and will continue falling (Q1 at 0.0%, if Q2 also shows no growth = officially recession). Also, QT lol. The best bet for the ’70s were commodities, energy, and hard assets. Get in the game.

Western Union stops international Russia remittances

In a further development, money transfer service Western Union — traditionally a competitor-in-waiting for Bitcoin — announced that it would halt remittances to both Russia and Belarus.

Related: How do politicians, Bitcoiners and financial experts react to inflation in Europe?

WhalePanda commented, “If only there were something that could replace these corporates and that’s kinda central and no one really has control and that you don’t have to physically transport around,”

Market participants concluded that Bitcoin had not changed over time in either low or high-frequency periods.

High timeframe for #BTC Rising wedge and local top $69k H&S Neckline. This is the current range. If SL is triggered, you can look for entry points at the key trendline range or lower. The market is hungry for bulls. Enter @ support, but be ready in case we go lower
— ANBTCESSA (@Anbessa100) March 10, 2022

Overnight, BTC/USD printed another familiar move in form of a “Bart” chart pattern. Unfortunately, this time, it failed to hold $40,000 support.