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Bitcoin Price Takes a Tumble, But ‘Buy the Dip’ Calls Spike

Bitcoin Price Takes a Tumble, But ‘Buy the Dip’ Calls Spike

CoineditionCoinedition2024/06/12 07:37
By:Anisha Pandey
  • Bitcoin’s price reacted sharply to the upcoming CPI report.
  • Experts predict the CPI report could significantly impact crypto prices.
  • Bitcoin’s recent dip has been met with both skepticism and optimism from analysts.

The United States awaits the release of the May 2024 Consumer Price Index (CPI) report, and blockchain analysis platform Santiment predicts Bitcoin (BTC) to react strongly.

In an X (formerly Twitter) post, Santiment stated that experts forecast a 3.4% year-over-year or 0.3% month-over-month increase for the US CPI, due on June 12th at 12:30 pm UTC.

Santiment noted, “If actual numbers are lower than expected, it signals slowing inflation, likely boosting crypto prices. If numbers are higher, it signals persistent inflation concerns, likely causing crypto to drop.”

Meanwhile, Bitcoin’s recent price dip has been labeled a “ scam dump ” by crypto researcher “gumshoe,” who highlighted similar dips before all four Federal Open Market Committee (FOMC) meetings in 2024. The researcher said: 

“BTC dumped 10% in the 48 hours before all of them on FOMC day… it recovered the entire move the market always prices in overly bearish statements, then reverses.”

Santiment also observed that Bitcoin’s dip below $67,000 triggered a surge in social media buy calls . The firm noted, “Historically, when the gap between sell calls and buy calls narrows, panic and FUD set in, often leading to crypto rebounds.”

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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