After failing to gain traction as a result of the latest U.S. inflation data, Bitcoin now faces competition from commodities.
On March 10, Bitcoin (BTC) reverted to February after the latest U.S. inflation figures prompted a bout of volatility.
Wheat competes with Bitcoin for market share.
BTC/USD reacted sharply to February’s consumer price index (CPI) readout, according to data from various analysts.
Despite matching estimates at 7.9%, Bitcoin’s reaction was less than last month’s, with a breakout above $40,000 followed by a drop to 24-hour lows.
Bitcoin was trading at the same price it had been before the event at the time of writing.
Meanwhile, the start of Wall Street trading did not result in any significant changes to the short-term status quo.
At the time of writing, the S&P 500 was down 0.6 percent, with rising commodity prices – including oil and wheat — taking centre stage.
Pentoshi, a well-known trader, said, “Wheat is everything BTC hoped to be and more.”
“A worldwide reserve currency with an inflation hedge that you can trade and carry in your pocket.” What are you doing with your life if you aren’t heading to your local supermarket right now and stocking up on Wheaties?”
The Federal Reserve of the United States had until March 16 to decide whether or not to raise its base rate.
“Energy is required to keep the economy running. Energy prices are skyrocketing, with no sign of a slowdown in sight “On the same day, Material Scientist, the creator of the monitoring resource Material Indicators, added.
“As a result, economic output (GDP) has been declining and will continue to do so (Q1 growth of 0%, with no increase in Q2 = technically recession). In addition, QT. Commodities, energy, and physical assets were the best bets in the 1970s. Buckle up.”
Western Union has put a halt to international remittances to Russia.
In a related incident, Western Union, a conventional Bitcoin competitor-in-waiting, declared that it will cease remittances to Russia and Belarus.
“If only there was something that could replace these businesses, something that was decentralized and that no one truly had power over, and that you didn’t have to physically carry about,” WhalePanda, a commentator, said.
Market participants determined that very little had changed for Bitcoin on both low and high periods.
#BTC low timeframe
We are still observing the same descending broadening wedge breakout retest after the 12% pump
Knowing it's the chop, you take profit at resistance and enter at support. Strategy is still playing r:r ratio.
4th re-entry rising wedge support SL below $38,5k pic.twitter.com/GpaGtXnqGV
— AN₿ESSA (@Anbessa100) March 10, 2022
BTC/USD had printed another similar move overnight in the form of a “Bart” chart pattern, failing to hold $40,000 support once again.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.