Bitcoin price squeeze expected as major events come closer
The Bitcoin (BTC) price is expected to squeeze if the August Consumer Price Index (CPI) rises further and the collapsed crypto firm FTX gets approval for liquidation.
According to the market analyst with the X (formerly Twitter) handle CrypNuevo, the U.S. CPI, scheduled for Sept. 13, might see an upsurge from 3.2% to around 3.6%. This could trigger FUD (fear, uncertainty, and doubt) among investors, which might ultimately initiate a selling pressure.
Moreover, another bearish expectation comes from the possibility of FTX’s liquidation. The bankrupt crypto platform reportedly has roughly $7 billion in physical and digital assets.
Per CrypNuevo, there could be a market-wide “bloodbath” if both events, set for Sept. 13, happen together.
It’s important to note that Tron founder Justin Sun has been trying to make an official offer for FTX’s crypto assets to prevent a market crash.
Furthermore, data provided by Santiment shows that investor sentiment is still optimistic for Bitcoin despite the bear market conditions. Per the market intelligence platform, the ratio of BTC transactions in profit to loss is still positive. This indicates that the majority of the Bitcoin trades are still in profit.
In addition, the number of whale transactions comprising at least $100,000 worth of BTC has risen by around 113% over the past two days, reaching 8,321 transactions at the time of writing.
When the market moves by sharks and whales, high volatility is expected.
Bitcoin is up by 0.11% in the past 24 hours. It is trading at around $25,800 at the time of writing. The asset’s 24-hour trading volume has also risen by 112.7%, surpassing the $18 billion mark.
