Bitcoin pause post inflation rally on recession fears

Bitcoin price extended its increase and surged above $21600 early this week, which is the highest level since September 2022. The strong upside momentum was boosted after the investors were convinced that the Federal Reserve would pause its rate-hike cycle in early 2023 and prepares to slow its current policy tightening pace following a solid decrease in December’s inflation data.

While the last 2 sessions we saw that the price of Bitcoin and other cryptocurrency pairs struggling to break new highs following the release of weak economic data added to worries about a looming recession. The latest US economic data showed the US retail sales report posted a bigger decline than expected for December. US Industrial Production declined by -0.7% in December, the biggest decline since Sept 2021.

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