The Wall Street giants and analysts hint at further recovery in the crypto market, continuing gains witnessed on Monday. Bitcoin and Ethereum prices reached near crucial levels after the massive rally as investors pulls out their money from banks and stablecoins.
The collapse of Silvergate Bank, Silicon Valley Bank, and Signature Bank caused a banking crisis in the U.S., with contagion spreading globally. Federal agencies in the U.S. and President Joe Biden failed to assure depositors amid the bank woes. As a result, the crypto market recovered and BTC price skyrocketed 20% to near the $25K level.
Wall Street and Analysts — Bitcoin Price Hitting $25K After US CPI
Wall Street experts see the annual inflation rate fell to 6% in February, slowing for an eighth straight month and marking the lowest level since September 2021. In January, the U.S. CPI inflation of 6.4% against the expected 6.2% hindered the crypto market rally seen since the start of the year. Bitcoin price also fell from the $25,000 level.
However, Wall Street giants are confident about the U.S. Federal Reserve dropping its aggressive rate hikes policy amid the banking crisis in the U.S. The latest nonfarm payrolls and unemployment data also support a 0 or 25 bps rate hike in March.
JPMorgan, Morgan Stanley, Wells Fargo, Scotiabank, UBS, Credit Suisse, HSBC, and Nomura estimated a slowdown in the annual inflation rate to 6% in February. Meanwhile, Goldman Sachs, Bank of America, Visa, TD Bank, BMO, and CIBC expected a fall to 6.1%. Interestingly, investment bank Stifel analysis shows the CPI inflation at 5.8% in February.
Popular analyst Michael van de Poppe predicts Bitcoin price is testing range high at $25K. However, investors will likely see some consideration before a major upside momentum. Anything below a CPI of 6% and a Core CPI of 5.5% will make Bitcoin price rally higher. Moreover, the sentiment is already positive as Fed Chair Jerome Powell is likely to drop the rate hike plan this month.
Crypto analyst The Wolf Of All Streets believes the Fed will print again after the CPI and Bitcoin will go parabolic. Other analysts think quantitative easing (QE) is on the cards to inject liquidity amid the banking crisis in the U.S. after a closed-door meeting on Monday.
Also Read: Barclays Predicts No Interest Rate Hike In Upcoming Fed Meeting
The U.S. Dollar Index (DXY) fell to 103.5 on Monday and currently moves near 103.70. The continuous fall, especially to 103, will confirm a bullish momentum in Bitcoin price, and other crypto including Ethereum will follow suit.
The CME FedWatch Tool indicates a 26.9% probability of no rate hike and a 73.1% probability of a 25 bps rate hike by the Fed on March 22.
Also Read: Banks Down Bitcoin (BTC) Price Up, Is The Great Reset Kicking In?
The post Bitcoin Price Breaking $25,000 After US CPI Release, Wall Street And Analysts Hint appeared first on CoinGape.
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