Bitcoin holds $24K as USD taps 3-week lows on eurozone inflation report

Bitcoin (BTC), which sought $24,000 support prior to the July 29 Wall Street Open, was unsuccessful. New inflation data had sparked concerns for the euro.

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

Eurozone inflation estimate shows no peak

Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD maintained most of its recent gains, after it spiked to almost $24,500 overnight.

Unfortunately, the European Economic Area (EEA) received some bad news today from macro action. The latest estimates of euro inflation for July came in at 8.9% — still higher than June’s 8.6%.

According to Eurostat’s accompanying report, “Looking at the main components in euro area inflation, energy will have the highest annual rate (39.7%, compare with 42.0% June), followed closely by food, alcohol and tobacco (9.8%, compare with 8.9% June), non-energy industrial products (4.5%, comparison with 4.3% June) and services (3.7% compared to 3.4% June).

These data revealed a striking contrast in certain EU member states. Growth outperformed expectations despite high inflation rates in the history of euro’s existence. Some commentators guessed that it was not all as it appeared.

800Billion Euro spending fund – a cover for sad facts https://t.co/31m7ZviKtb
— Tamay Ozgokmen (@TOzgokmen) July 29, 2022

The European Quandary nevertheless buoyed US dollar which was falling against a basket trading partner currencies throughout July.

The U.S. Dollar index (DXY), which was at its lowest level since July 5, touched 105.54, before recovering to close to 106 at the time.

An important inverse correlation in crypto markets, further DXY advancements could signal new pressure on BTC prices.

“DXY just fell to the previous high now support, and seems to be holding. Popular trading account Mikybull crypto predicted a possible bounce here to the previous high now support and then further fall. In a new Twitter update, Mikybull Crypto stated that this scenario would result in a pullback of $22,800 for Bitcoin/USD.

U.S. dollar index (DXY) 1-day candle chart. Source: TradingView

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Arthur Hayes, the ex-CEO and founder of BitMEX derivatives platform BitMEX, suggested that a weaker US dollar was on the horizon in a surprising bullish turn.

Related: Bitcoin bull market ‘getting exciting’ as BTC prices hit 6-week high

Hayes declared that Hayes had stated that the Federal Reserve had begun to return to more neutral rates and a more accommodative monetary policies after the Federal Reserve raised its key rate.

Fed Chair Jerome Powell wrote that he would not increase hikes any further on July 28. He called this the “Powell pivot”.

My body is ready for the Powell Pivot, and my portfolio is also. pic.twitter.com/hlI8lzqLcX
Arthur Hayes (@CryptoHayes), July 28, 2022

Cointelegraph reported recently that the Fed has little room to maneuver due to rate increases increasing the probability of a deeper recession.

This week’s GDP data had placed the U.S. into a technical recession due to two consecutive quarters of negative numbers.

com. You should do your research before making any investment or trading decision.
https://cointelegraph.com/news/bitcoin-holds-24k-as-us-dollar-taps-3-week-lows-on-eurozone-inflation-report

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Donna Burk– Business News My Name is Donna Burk and I am also the main source from the ‘Dailynewssheet.com’ of all the exclusive and most delicate visualization of the activities in the business sector. My first step towards this journey was taken in the very early years of my life. I started with an independent financial consultant. However, I only had almost 4 years of skills and experience in this market. I have always been a free personality and like to fly one place to another, to explore more and more. Moreover, this passion and craze of traveling gave me a chance to report a section for best news associations. Last but not least, I am presently working full-time as an editor.

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