Cryptocurrency analyst Aurelie Barthere has shared important information about the development process of Bitcoin in 2024 in her statement.
A renowned analyst has warned that Bitcoin could face significant challenges in 2024 as inflation continues to rise.
Data on the Consumer Price Index (CPI) and Producer Price Index (PPI) of the United States in January, combined with strong employment reports, has raised concerns about the potential impact on Bitcoin and the cryptocurrency market in general for the year ahead.
The strong increase in employment suggests a rise in economic demand, which could lead to higher spending.
Meanwhile, the high CPI and PPI indicate a high cost of goods and services, contributing to inflationary pressure as businesses may pass these costs on to consumers.
Aurelie Barthere, a senior research analyst at Nansen, suggests that any signs of weakening growth could be the next catalyst for cryptocurrency prices. Barthere says, “I think there is a high likelihood of a slowdown/recession in the second half of 2024, which would be negative for bitcoin.”
Barthere also notes the persistent existence of certain inflation components in the US, especially service inflation, including housing.
He adds, “If inflation accelerates again, this will negatively affect cryptocurrency prices in our view.”
Despite these underlying macroeconomic tensions, Barthere believes that the cryptocurrency industry is currently more focused on new catalysts such as the Ethereum Spot ETF.
However, he warns that the next phase to watch is the rate of slowdown in growth, which could have a negative impact on cryptocurrencies.
