Bitcoin Hits $19,200, But will Momentum Continue?

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    Marcus Sotiriou, Market Analyst at the publicly listed digital asset broker GlobalBlock (TSXV:BLOK).

    Bitcoin is currently facing resistance at $19,200, and yesterday’s CPI news could provide some hope for the outlook of global markets and crypto in 2023. Bitcoin is rallying after the release, as CPI was expected to decrease by 0.1% month-over-month, and headline year-over-year CPI is expected to decrease from 7.1% to 6.55%, which it did.

    The latest inflation data, which were released on Thursday by the Bureau of Labor Statistics, showed prices were 6.5 percent higher in December than they were a year before — and fell 0.1 percent compared with November. This is the first time prices have dropped month over month since May 2020.

    Earlier Morgan Stanley released some data to back up the prediction of a inflation decrease, as the labour market continues to slow. The monthly US nonfarm payroll changes showed a deceleration, which were related to job gains and earnings growth. In addition, hours worked were shown to be contracting, as average weekly earnings and average weekly hours were both slowing. Furthermore, ISM manufacturing and services data have both been showing a convincing contraction in recent months.