Bitcoin sees competition from commodities after failing to put in lasting gains from the latest U.S. inflation news.
Bitcoin (BTC) turned back time to February on March 10 as the latest U.S. inflation data sparked a bout of volatility.
BTC/USD 1-minute candle chart (Bitstamp). Source: TradingView
Wheat gives Bitcoin a run for its money
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reacting strongly to February’s consumer price index (CPI) readout.
Despite matching forecasts at 7.9%, the print saw Bitcoin stage a smaller version of last month’s reaction, with a breakout above $40,000 followed immediately by a trip to 24-hour lows.
At the time of writing, Bitcoin traded at the same place it had done before the event.
“High inflation numbers are calling for faster hikes and potential QT, quantitative tightening, resulting in a stronger Dollar and people selling their risk-on assets. That’s the short-term reaction,” Cointelegraph contributor Michaël van de Poppe summarized.
“Such high inflation isn’t great, nonetheless. Long-term though; Bitcoin.”
The start of Wall Street trading meanwhile did not produce any noticeable changes to the short-term status quo.
The S&P 500 was down 0.6% at the time of writing, while burgeoning commodity prices — oil and wheat among others — remained center stage.
“Wheat is everything BTC wanted to be and more,” popular trader Pentoshi joked.
“A global reserve currency, inflation hedge, you can trade and carry in your pocket thats light weight. If you aren’t going to your local store right now and going all in Wheaties what are you even doing with your life?”Wheat CFDs 1-day candle chart. Source: TradingView
The U.S. Federal Reserve’s decision on raising its base rate was due March 16.
“Economy needs energy to run. Energy prices are soaring with no relief in sight,” Material Scientist, creator of monitoring resource Material Indicators, added on the day.
“Therefore, economic output (GDP) has and will continue to drop (Q1 at 0%, if Q2 also no growth = officially recession). Also, QT lol. Best bet in ’70s was commodities, energy, hard assets. Strap in.”
Western Union halts 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: Inflation spikes in Europe: What do Bitcoiners, politicians and financial experts think?
“If only there was something that could replace these corporations and that’s kinda decentralized and no one really has control over and that you don’t have to physically carry around,” commentator WhalePanda reacted.
On both low and high timeframes, however, very little had changed for Bitcoin, market participants concluded.
#BTC high timeframe
Rising wedge + local top $69k H&S neckline extended
is the current range
If SL triggered ou look for an entry at key trendline range or lower.
Bears have been milked, the market wants bulls rekt too. Enter @ support, but be ready in case we go lower pic.twitter.com/1DowiRV1z3
— AN₿ESSA (@Anbessa100) March 10, 2022
Overnight, BTC/USD had printed another familiar move in the form of a “Bart” chart pattern, once again failing to hold $40,000 support.
