The consumer price index (CPI) inflation data released in the US came in above expectations, pushing the Bitcoin price to $58,900. This created serious selling pressure that led Bitcoin to fall below $60,600. Famous trader Peter Brandt drew attention to the possibility of a 75% correction in current market conditions. Brandt warned the Bitcoin community that a historical trend could repeat itself, stating that if Bitcoin fails to set a new ATH within 30 weeks of exceeding its all-time high (ATH), a 75% drop could occur.
China's Economic Support Package Expectations
Investors are aiming to stimulate the economy with a new $283 billion support package that China is expected to announce this weekend. The focus of the support package will be to determine the government’s economic strategy, according to a Bloomberg report. Pushan Dutt, Professor of Economics at INSEAD, emphasized that the long-term nature of the support and its targeting of households are more important than the size of the package.
The volatility in the Chinese stock markets caused the Bitcoin price to fall short of expectations. The support measures appear to be pulling liquidity from the crypto market and turning to the Chinese market. This indicates that the upcoming support package may have negative effects on Bitcoin and altcoins.
The general uncertainty in the market and Peter Brandt’s warnings have caused investors to adopt a cautious approach. How China’s large support package will affect the market is being watched carefully. Investors are trying to determine their strategies by following the developments.
