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⚡Bitcoin Holds $26,000✊

Croxroad

14 Sep 2023 — 5 min read

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💪 CPI Reports 3.7% Annual Increase

The US Bureau of Labor Statistics just released some data on how much stuff costs, and it turns out prices went up more than everyone expected. This surprised the market, and Bitcoin's price initially dipped a bit, along with most other top cryptocurrencies.

The Consumer Price Index (CPI), which tells us how much prices have gone up for regular stuff we buy. Well, the latest numbers showed that it went up by 3.7% in a year, and that's a bit more than what experts thought it would be – they were guessing around 3.6%. To give you an idea, in July, it was at 3.2%, so it's going up.

There's also something called 'Core CPI,' which takes out the prices of food and energy. It went down a bit to 4.3%, which was pretty much what everyone expected, compared to 4.7% back in July.

Matias Salord from FXStreet, and he's saying that because prices went up more than everyone thought, it might make the Federal Reserve, which is like the big boss of the US economy, sound a bit 'hawkish.' That means they might start talking about raising interest rates.

Now, they're having this meeting next week called the Federal Open Market Committee (FOMC) meeting. And if they do start talking about raising interest rates, it doesn't necessarily mean they'll do it right away. It's just a possibility on the table.

So, as of now, Bitcoin's price is still holding steady above $26,000. Initially, people thought it might drop because when inflation goes up, folks tend to be less interested in riskier stuff like Bitcoin. So, they figured Bitcoin might go below $26,000, but it hasn't happened yet.

Right after the news, things in the market were kind of meh, not really going up or down much. The smaller declines were mostly around 1%, so not a big deal.

Now, looking ahead, it's a bit uncertain. If people get more skeptical about the market, Bitcoin might take a dip, maybe even below $24,578, and could go as low as $21,468. But, if the market surprises us and keeps looking positive, with Bitcoin climbing past $26,430, it might start a recovery rally and prove the bearish predictions wrong.

⚖️ Bankrupt FTX Gets Green Light to Liquidate BTC Assets

The folks over at FTX, they're in a bit of a financial pickle. They owe some money to different people, and their lawyers went to this special court called the U.S. Bankruptcy Court in Delaware. They basically said, 'Hey, can we sell, use, and protect the crypto stuff we have so we can pay back the folks we owe money to?' It's like they're trying to use their crypto assets to settle their debts with creditors, including Bitcoin.

FTX, are facing some money troubles. They owe some people money, and they went to court, the U.S. Bankruptcy Court in Delaware, to sort things out. Well, guess what? The judge, a guy named John Dorsey, gave them the green light to do something important. He said, 'Yeah, sure, you can go ahead and use your crypto stuff to pay back the folks you owe.'

There were a couple of folks who weren't too happy about it and tried to stop it, but the judge said 'nope' to them. So now, FTX can sell, invest, and protect their crypto assets, which are worth a whopping $3.4 billion, to settle their debts.

During this court meeting about FTX's money troubles, there were a couple of lawyers involved. One lawyer, who was speaking for a group of FTX customers, liked the plan and thought it was a good idea. On the other hand, a lawyer representing some other folks who are owed money by FTX also said, 'Yep, let's make this happen as quickly as possible.'

FTX actually asked for permission to do all of this back in August. They told the court that using their crypto assets this way would help them avoid losing too much money before they sell off their Bitcoin and Ethereum. Plus, they said that by 'staking' some of their digital assets, they could make a bit of money for themselves and the people they owe money to. So, it's all about trying to make the best of a tricky situation.

FTX spilled the beans recently about what they've got in their crypto wallet. They've got a whopping $1.16 billion worth of Solana (SOL),This Suc*ker gonna crash which is about 16% of all the Solana tokens out there. And on top of that, they've got around $560 million in good old Bitcoin (BTC).

But the rest of their crypto collection? Well, it's made up of some lesser-known and not-so-easy-to-sell tokens. So, they've got a pretty big stash of Solana and Bitcoin, but the rest of it might not be so easy to turn into cash.

🔨 Hammer

If you spot a candlestick with a long tail at the bottom, that's a different story. It means the price has dropped, but now folks are thinking it's a good time to buy because it's at a low point. So, they start buying it up, hoping it will go up again soon. When you see this kind of candlestick, like a 'hammer' shape, it often means the price might go up the next day. It's like a little signal that things could be turning around after a downward trend.