BTC Price Fluctuations: Bitcoin Breaks $22,000, How Far Can It Go?

Due to shaky macroeconomic conditions, the price of bitcoin is experiencing significant fluctuations. Bitcoin crossed the $22.1K mark before falling slightly below $22K. The largest crypto-currency has gained nearly 10% in the last 7 days.

Influencer, James from Invest Answers, believes that BTC has broken through the critical resistance area of $21,750 and will target the $24K price range. However, experts also warn against a quick rise and fall as macroeconomic conditions are currently uncertain.

What influences the price of bitcoin

Macroeconomic conditions are causing the crypto market to fluctuate. After nearly breaking the $22.2K mark, the price of bitcoin has fallen back below $21.8K. The Consumer Price Index data for August will be released tomorrow. This data is expected to significantly influence the Fed’s decision on the next interest rate hike.

The Fed is expected to continue its hawkish stance of quantitative tightening to fight inflation. Fed Chairman Jerome Powell believes the Fed will want to quickly bring inflation back below 2 percent. The central bank does not want runaway inflation to become the norm in the minds of consumers. St. Louis Fed President James Bullard reveals that he favors another 75 basis point increase in interest rates.

Minneapolis Fed President Neel Kashkari and Cleveland Fed President Loretta Mester both advocated an aggressive stance against inflation. The CME’s Fed Watch tool now shows a 90% probability of a 75 basis point hike. The Fed is unlikely to reverse its hawkish stance after September. According to Loretta Mester, the Fed will have to raise the target interest rate above 400 basis points to fight inflation. The current target rate is 225-250 basis points.

Other key events to watch

The CPI will be released on September 13. However, this is not the only key event of the week. The UK and Eurozone CPI will also be released. In addition, the PPI, another key inflation index, will also be released for the US.