Bitcoin sees new record difficulty as markets await Fed inflation plans

Welcome to the Cointelegraph Markets weekly newsletter that covers the main factors influencing Bitcoin's price in the week ahead...

View this email in your browser Markets Outlook Bitcoin sees new record difficulty as markets await Fed inflation plans "I'm sure that in 20 years there will either be very large transaction volume or no volume."  — Satoshi Nakamoto Welcome to the Cointelegraph Markets weekly newsletter that covers the main factors influencing Bitcoin's price in the week ahead. In the ever-changing Bitcoin environment, one week rarely looks like the last — what will the coming days have in store for traders? Continue reading to discover five things set to sway BTC price action as markets reopen for another week's trading. Markets focus on U.S. inflation A central topic of discussion will be Thursday's Federal Reserve speech, during which the United States central bank is widely tipped to reveal its plans for inflation. As Cointelegraph reported, this may hit as much as 4% from its current 0.6%, depending on how strict a policy the Fed adopts. Regardless, higher inflation under current circumstances should be a boon for Bitcoin and gold, analysts previously stated. U.S. dollar weakness, another key factor driving Bitcoin's strength, meanwhile continues despite a modest turnaround in recent days. BTC dropping to four figures? Not for long In the near term, analysts remain confident about the strength of $10,000 to sustain Bitcoin price action. In his latest analysis, Michaël van de Poppe revealed that he was looking for a floor of $9,600 to put in fresh buy bids for Bitcoin. The dip, should it occur, would come in the form of a brief wick down to those levels, with $10,000 support broadly remaining in place. Fundamentals skewed to the upside Bitcoin hit a new record high for difficulty on Monday, with 18.17 trillion underscoring miners' continued interest in transaction validation. Competition is fiercer than ever, difficulty estimates suggest, while the hash rate has come off its own all-time highs over the past week. Miner revenue has rebounded to levels seen before the May block subsidy halving event, which cut them by 50% overnight. Another options expiry looms In a manner similar to the end of June, the best part of $1 billion in Bitcoin options is set to expire this Friday. With Bitcoin futures at CME Group record short, the event may trigger different consequences to June's $930-billion expiry, which ultimately did not move the market. Institutional interest in derivatives remains strong, based on inflows to investment giants such as Grayscale in recent weeks. Greed still characterizes Bitcoin The Crypto Fear & Greed Index is trending up again, still firmly in its highest range. At the same time, volatility is incoming, according to Bollinger Band analysis, the indicator correctly predicting the previous $12,000 run-up. "Extreme greed" suggests that the market is due for a correction. 1.5 million people follow us on social media Download our official app:

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