Bitcoin Faces Possible Short-Term Correction Amid Inflation Concerns and Fed Chair Replacement Talks
2025-07-16 06:11:05
Main Idea
Bitcoin is experiencing a short-term price correction due to inflation concerns and Federal Reserve uncertainty, with key indicators suggesting potential further declines.
Key Points
1. Bitcoin's price dropped by 5%, with around 14,000 BTC flowing into exchanges, indicating profit-taking behavior.
2. June's U.S. CPI showed inflation rising to 2.7%, up from 2.4%, negatively impacting risk assets like cryptocurrencies.
3. The Market Value to Realized Value (MVRV) ratio exceeding 10% suggests a high likelihood of corrections, as seen in Bitcoin's 8% drop from $109,000.
4. Federal Reserve Chair Jerome Powell's term expiration in 2026 and potential leadership changes add to market uncertainty.
5. On-chain data and exchange inflows signal possible further declines, with Bitcoin liquidation strength potentially exceeding $1.15 billion if prices break $119,000.
Description
Bitcoin experiences a notable 5% correction from its recent all-time highs amid persistent inflation concerns and speculation over Federal Reserve Chair Jerome Powell’s potential replacement. On-chain data reveals increased exchange
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