Bitcoin holds $20K as ECB warns inflation may never return to pre-COVID lows

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Bitcoin (BTC) held steady at just over $20,000 after Wall Street opened on June 29 as Europe’s top banker admitted that the world would “never go back” to low inflation.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Lagarde on inflation: ‘I don’t think we’ll ever go back’
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD looks volatile but unstable as it is stuck in a tight range during the day.

US stock markets were similarly calm after Asian trading saw fresh losses. Meanwhile, comments from Europe’s central bankers set the tone for the overall economy.

In particular, Christine Lagarde, President of the European Central Bank (ECB), appears to have stated that inflation will remain high indefinitely.

“I don’t think we are going back to that period of low inflation,” she said during a press conference at the ongoing European Central Bank Forum in Sintra, Portugal.

She was joined by Federal Reserve Chairman Jerome Powell, who sounded similarly pessimistic on the speculation while promising not to rest until inflation matches the bank’s 2% target.

“That’s our goal, that’s our goal; we think there are different ways to achieve that, to get our way back to 2% inflation while maintaining a strong labor market. We think we can do that, that’s our goal; there’s no guarantee we can. to do that “.

Bitcoin Bulls Defending Top of 2017
Bitcoin did not respond to the comments, which preceded the new US Consumer Price Index (CPI) data by about two weeks.

For Bitcoin analysts, meanwhile, the focus was on the June monthly close.

On-chain analytics resource, Material Indicators now predicted a breakout “very soon” as the monthly candle was doomed to disappoint.

“Bulls are defending the top for 2017, but with one day left, it will be nearly impossible to print a green monthly candle,” she told Twitter followers.

“There is still a chance for the green throughout the week. Expect volatility. One way or another, Bitcoin will break or crash very soon.”
An accompanying chart showing the order book of major exchange Binance confirmed the buying and selling interest of BTC/USD with an eye on current prices.

BTC/USD (Binance) order book data. Source: Material Indicators / Twitter
As Cointelegraph reported, June 2022 was already on track to be the worst month since 2018.

Prices continue to roast corporate investors
Elsewhere, MicroStrategy has boosted Bitcoin’s treasury with a new purchase of 480 BTC, a move that commentators have applauded.

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