Bitcoin Price Holds $24K

Bitcoin is trying to turn $24,000 into support before Wall Street opens on July 29, when new inflation data raises concerns for the euro.

Bitcoin (BTC) is trying to turn $24,000 into support before Wall Street opens on July 29, when new inflation data raises concerns for the euro.

Inflation in the Euro Zone Does Not Stop

The macro developments of the day were painful for the European Economic Area (EEA). Inflation in the region, which was 8.6 percent in June, is expected to climb to 8.9 percent in July.

Eurostat, in its new report, “Looking at the main elements of inflation in the euro area, energy showed the highest annual rate in July (39.7 percent versus 42 percent in June), followed by food, alcohol & tobacco (8.9 percent in June). 9.8 percent, non-energy industrial products (4.59 percent versus 4.3 percent in June) and services (3.7 percent versus 3.4 percent in June are expected to follow).

The fluctuation of the euro zone also made the US dollar fluctuate. Touching 105.54, the lowest point level since July 5, during the day, the US Dollar Index (DXY) approached 106 points again.

Strengthening DXY, which is known to be inversely correlated with crypto markets, could mean a new wave of pressure for BTC price action is on the way.

Popular trading account Mikybull Crypto commented, “DXY has dropped to former high support and seems to be holding on to it. With a possible rebound from here, we can see 107, 108 points before falling again.” According to Mikybull Crypto, this scenario could bring the BTC/USD pair down to $22,800.

Arthur Hayes, former CEO of derivatives platform BitMEX, said it was only a matter of time before the dollar weakened.

Hayes argued that after the Fed's latest rate hike, the central bank's return to moderate monetary policy and more neutral interest rates is tied.

Behind this view, the Fed is left with little choice as the US economy is confirmed to be in recession. The Fed's continued rate hike could plunge the country's economy into a much deeper recession.