Bitcoin investors hope for a positive inflation signal in order to continue rally

There’s once again a high degree of correlation between the Nasdaq technology stock exchange and the price chart of Bitcoin. This is mainly because both are traded (and purchased) during a so-called “risk-on” phases (where investors invest more in riskier assets).

This afternoon’s inflation figures from the United States will provide an initial indication of whether this “risk-on” modus can continue. If inflation rises further, investors will build in safety and riskier assets might slide.

If inflation proves to be under control and positive signals emerge from Alaska at the end of this week (where Trump and Putin will negotiate a ceasefire in Ukraine), then the next few weeks could be a very bullish period (which is quite unusual in August) indeed.

At the time of writing, Bitcoin is trading at a price of $118,800.

Jobs and inflation

Macroeconomic data from the United States can move stock markets (and Bitcoin), and therefore they are being closely scrutinized. This was especially true last week when the jobs figures disappointed and President Donald Trump suddenly fired the head of the statistics agency. However, the government agency responsible for jobs figures also reports inflation figures, so this afternoon’s figures will be particularly closely watched.

If the figures are positive, and stock markets and Bitcoin can begin a new leg-up, many will already be wondering whether Trump’s threat has worked, and thus whether we have actually seen the actual figures.

Whatever the case, Bitcoin is now trading nicely again between $116,000 and $121,000, maintaining the support line of the 200-day moving average.