Is 2023 going to be a year of potential growth or decline for Bitcoin (BTC)?

So far, it has been a year of strong performance for the leading cryptocurrency, with prices generally on the rise. And for many analysts and Bitcoin enthusiasts, this trend is expected to continue. However, others are a bit more cautious due to the economic context and its impact on the crypto market.

BTC prices impacted by the release of inflation figures

Currently trading around $27,700, Bitcoin has dropped by 2.34% in the past two days. This trend should not worry those who think that the asset has become robust enough not to collapse. Of course, this is still just an opinion that is not universally shared.

This idea is even contradicted by Kaiko, a data provider for the crypto industry. In an analysis published on May 10th, Kaiko points out the constant link between Bitcoin prices and monthly US inflation figures.

According to Kaiko, the release of these data by the Federal Reserve (Fed) regularly has an impact on BTC. Generally, the analyst notes that the period of disclosure of these figures marks a certain instability in the prices of the leading cryptocurrency.

Thus, there is a volatility of the asset prices 6 hours before the publication of inflation data. This trend is the same 6 hours after they are made public. But for Kaiko, this dynamic, often punctual, should not be so this time around.

“The intraday volatility, especially around data releases, remains above average. This trend will continue as the U.S. Federal Reserve made it clear last week that monetary policy will be even more data-dependent,” said Dessislava Aubert, research analyst at Kaiko.

In concrete terms, this means one thing: Bitcoin could soon experience a strong variation in its price! The only drawback is that it could either rise again or, on the other hand, collapse. In either case, it is important to be prepared.