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Fears surrounding inflation and potential shifts in Federal Reserve policy have cast uncertainty on the crypto market, influencing both bitcoin’s short-term price action and investor sentiment.

In an in-depth look at these market swings, Host of CryptosRus, George Tung, sheds light on how upcoming economic data releases could shape the outlook for risk-on assets.

Tung explains, “Why did bitcoin and crypto go down today? Well, quite simply, it’s due to fears about inflation. Wall Street is now looking at several key pieces of data... they are afraid the data is going to show the economy’s in a better position than expected, which will cause inflation to go up.” This dynamic, he points out, often leads to fewer rate cuts—a factor that can intensify volatility in bitcoin and other cryptocurrencies.

Emphasizing how sudden and reactionary Wall Street can be, George Tung also notes, “Wall Street is supposed to be able to speculate and guess on what’s coming, but a lot of times they’re just as reactionary, if not more so, than retail investors.” With major releases like the PPI (Producer Price Index), CPI (Consumer Price Index) and manufacturing reports scheduled throughout the week, the possibility of additional downturns remains high, intensifying debates over whether crypto is hitting a roadblock or simply biding its time.

Drawing upon historical data, George Tung points to trends from previous four-year cycles. “If you look at 2017 and 2021, they were the last years of those cycles right before the very big spike for bitcoin. We also had huge volatility and huge drops,” he says. By comparing today’s climate with past cycles, he highlights the prospect that today’s turbulence may be part of a long-recognized pattern rather than an extraordinary event.

Despite the roller-coaster start to the year, George Tung retains a confident perspective on the future of bitcoin and crypto markets. “Stay strong, stay focused, continue to HODL, and DCA (Dollar-Cost Averaging),” he concludes, suggesting that long-term strategies and patience may outlast any near-term disruptions driven by inflationary pressures and broader economic uncertainties .