Bitcoin Holds Steady Near $64,600 Amid Easing Inflation and Geopolitical Concerns

Bitcoin Holds Steady Near $64,600 Amid Inflation Easing and Geopolitical Tensions

Thursday, October 5, 2023 — Bitcoin, the world’s largest cryptocurrency, traded flat near the $64,600 mark on Thursday, closing at $64,560. Investors remain cautious as easing inflation data contrasts with rising geopolitical tensions, creating a complex market environment.

In the past 24 hours, Bitcoin experienced a slight decline of 0.42%. Meanwhile, Ethereum saw a notable gain of 2.24%, trading at $1,917. Among major altcoins, BNB and XRP rose modestly by 0.45% and 0.51%, respectively. However, other cryptocurrencies such as Solana, Tron, Hyperliquid, Dogecoin, and Cardano faced declines of up to 0.95%.

Vikram Subburaj, CEO of Giottus, noted that softer-than-expected U.S. consumer and producer inflation data has alleviated fears of an immediate Federal Reserve rate hike. However, he cautioned that renewed geopolitical tensions and rising crude oil prices have tempered a more robust risk-on rally. Subburaj advised investors to adopt a cautious approach, emphasizing staggered accumulation and disciplined position sizing until Bitcoin can consistently hold above $65,500.

The global cryptocurrency market capitalization edged up by 0.1% to $2.22 trillion, according to CoinMarketCap. The CoinDCX Research Team reported that Bitcoin briefly touched a local high above $65,600, driven by nearly $209 million in short liquidations. However, activity in crypto ETFs, aside from Bitcoin and Ethereum, remained virtually stagnant.

Over the past week, Bitcoin and Ethereum have gained 2.41% and 9.25%, respectively. Other major altcoins, including BNB, XRP, and Dogecoin, saw increases of up to 1.61%, while Solana, Tron, and Hyperliquid faced declines of up to 2.03%. The CoinSwitch Markets Desk highlighted that Bitcoin reached a three-week high of $65,500 following a 0.3% month-on-month drop in U.S. producer inflation, reinforcing the softer Consumer Price Index (CPI) data released earlier.

Bitcoin now faces resistance around the $67,200 mark, with analysts suggesting that a sustained breakout above this level could pave the way toward $70,000. However, traders remain vigilant as the cryptocurrency approaches its 50-month exponential moving average (EMA), historically a key resistance level during bearish phases.

Avinash Shekhar, Co-founder and CEO of Pi42, expressed optimism about renewed institutional confidence in the crypto market, particularly with Bitcoin benefiting from fresh ETF inflows. He advised investors to build positions gradually and maintain a disciplined approach rather than reacting to daily price fluctuations.

Riya Sehgal, Research Analyst at Delta Exchange, noted that Bitcoin is still struggling to establish acceptance above the $65,000-$66,000 resistance zone, with key support near $64,200. She pointed out that while Ethereum shows stronger relative momentum, its Relative Strength Index (RSI) at around 71 indicates overextended conditions.

Nischal Shetty, Founder of WazirX, echoed the sentiment of renewed optimism in the crypto market, attributing it to softer inflation data that has eased concerns over further interest rate hikes. He highlighted that lower rate expectations typically enhance liquidity for risk assets, with signs of institutional confidence emerging as both Bitcoin and Ethereum spot ETFs recorded fresh inflows last week.

As the market navigates these mixed signals, investors are urged to remain cautious and strategic in their approach to cryptocurrency trading.

(Disclaimer: Recommendations, suggestions, views, and opinions expressed by the experts are their own and do not represent the views of The Economic Times.)