Bitcoin Rebounds Nearly 6% As the US, UK Report Multi-Year High Inflation

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The popular penny token Shiba Inu has revealed details of its much-anticipated virtual reality project, “SHIB: The Metaverse.” Ethereum’s native cryptocurrency, Ether, has been set as a land pricing token.

The new venture from the famous meme coin will comprise 100,595 plots, some of which will remain private. The sequence of lands will be released in phases.

According to Edul Patel, CEO and Co-founder of Mudrex, the primary purpose of the SHIB project is to build one of the strongest communities in crypto history. Its important announcements of entering metaverse space and offering over 100,000 plots of virtual space have gathered over 3 million followers, further increasing the token’s value.

The plots are priced between 0.2  to 1 Ether (ETH)  and are divided into four categories: Silver Fur, Gold Tail, Platinum Paw, and Diamond Teeth. The neutral cryptocurrency has been fixed for land pricing to ensure that Shiba Inu’s native token has no downside. The metaverse will be developed in Shibarium, a layer 2 system for SHIB. 

We would have to dump our own tokens price cashing them if we used our ecosystem tokens, and that is not in our plans, the Shiba Inu official blog stated.

According to Pratik Gauri, Founder, and CEO of 5ire, Shiba Inu has a large group of followers known as ShibuArmy, and will now allow users to earn passive income. 

According to market experts, Shiba Inu is joining the metaverse to compete with Decentraland.

At the time of writing, the Shiba Inu SHIB price is up 15.49% to $0.00002675. The token was commanding a market capitalization of $14.8 billion, the data from CoinStats suggests.

According to Lokesh Rao, CEO and co-founder of Trace Network Labs, the entry or creation of any metaverse is beneficial to the industry’s growth because the future lies in the metaverse. These platforms enable people to conduct business, and the expansion of such platforms is directly linked to the increase of revenue generation potential and job creation, he added.

According to the blog, the Shiba Ecosystem will be used entirely by the SHIB: The Metaverse project, meaning all tokens $SHIB, $BONE, and $LEASH will play a part as phases roll out.

The developers stated that land buyers would be able to earn passive income, acquire in-game resources, and generate rewards shortly.  Landowners can also rename their land while utilizing and burning the dog-themed token.

The cryptocurrency still faces risks of slumping to $30,000 as the Federal Reserve monetary policy is about to become a lot tighter in the coming months.

YEREVAN (CoinStats.app) — Bitcoin (BTC) has climbed above $41,000 as investors are returning to riskier assets amid persistently higher inflation in the U.S. and the U.K.

The flagship cryptocurrency, often touted as “digital gold” by hardcore Bitcoin supporters, rose to over $41,500 this Thursday. The rebound rally started April 11, after its bids had fallen to as low as $39,204, following a 14.6% month-to-date correction. As a result, Bitcoin’s overall paper profits in the last three days came out to be a little over 6%.

Bitcoin price screenshot TradingView
Bitcoin price on TradingView

Inflationary Pressures

Bitcoin’s modest rebound this week came with two key reports on inflation. In the U.S., the Consumer Price Index (CPI) for March increased 8.5% from a year ago, its highest level in four decades, according to the Bureau of Labor Statistics report published on April 12.

Inflation screenshot
Inflation screenshot

Meanwhile, the U.K. inflation reached 7% in March for the first time in 30 years due to rising fuel prices.

Eric Weiss, founder, and chief investment officer at Blockchain Investment Group, a New York-based digital asset hedge fund, blamed the U.S. Federal Reserve for causing “bad inflation” after printing 41% more U.S. dollars than in its lifetime since March 2020.

Weiss projected Bitcoin as a long-term solution against rising consumer prices, noting that he would take his chances with the cryptocurrency.

Similar sentiments appeared across Crypto Twitter, with many analysts posting “buy Bitcoin” texts after the inflation reports.

Inflation is the highest in more than 40 years.

Buy #Bitcoin or get rekt.

— Simon Dedic (@scoinaldo) April 12, 2022

The cost of living is up over 8% in the last year, but that’s only if you’re using dollars.

For those using and saving in Bitcoin, inflation is closer to 33% over that timeframe.

— Joe Weisenthal (@TheStalwart) April 12, 2022

Nonetheless, some of them also highlighted flaws in the “buy Bitcoin” strategy. For instance, Jan Wüstenfed, an economist at Quantum Economics, a market research newsletter, cited massive outflows from the Purpose Bitcoin ETF as an indication of investors reducing exposure to BTC.

In detail, on April 12, investors withdrew 840 BTC from the spot fund. The next day, they took away another 1,830 BTC.

glassnode screenshot

“Notable is the more frequent occurrence of outflows and the relatively big size of outflows since March,” wrote Wüstenfed, adding:

“While the outflows themselves should not be market moving, it is a possible indication that investors are reducing exposure to #Bitcoin in times of high inflation, high uncertainty, and a FED that is tightening monetary conditions.”

Technical outlook

From a technical perspective, Bitcoin has been defined by the movements within the bearish flag.

In detail, bearish flags are candlestick chart patterns that signal the extension of the downtrend once the temporary pause is finished. After a strong downtrend, the price action consolidates within the two parallel trend lines in the opposite direction of the downtrend. Once the supporting trend line gets broken, the bear flag pattern is activated as the price action continues trading lower. 

Consequently, Bitcoin’s current skew indicator is shifting to the downside.

bitcoin price predictions TradingView

This puts Bitcoin at risk of retesting again at the $30,000 level. 

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