As an experienced financial analyst, I believe the current situation with Bitcoin (BTC) is intriguing, given its recent rebound above $63,000 and the surge in trading volume ahead of the US inflation data release. The economic slowdown in America and the possibility of interest rate cuts have investors on edge, seeking confirmation regarding the presence and scale of inflation.
Following a weekend filled with selling activity that pushed it below the $63,000 mark, Bitcoin (BTC), the most prominent cryptocurrency globally, regained its footing and surpassed this threshold once more. At the moment of writing, Bitcoin is experiencing a 2.96% growth, valued at $62,715. Its market capitalization currently stands at an impressive $1.235 trillion.
As a crypto investor, I find it intriguing that Bitcoin’s daily trading volume has experienced a significant increase of 76% to surpass $23 billion. This heightened activity in Bitcoin trading is occurring prior to the upcoming US inflation data releases this week.
Based on recent economic statistics, the US economy has shown a decrease in growth rate compared to its strong showing during the previous year. Specifically, the labor market indicators for April revealed slower job creation than anticipated by analysts.
As a crypto investor, I’m closely monitoring the current economic situation and its potential impact on the Federal Reserve’s monetary policy. If this trend persists, I believe the Fed may feel compelled to lower interest rates in order to prevent a significant economic contraction in the US. Consequently, I’m paying close attention to incoming data that could shed light on the current state of inflation. This information will help clarify the magnitude, timing, and likelihood of potential interest rate cuts throughout the year.
All Eyes on the US CPI Numbers
As a researcher, I’m excited to share that this week brings significant insights into the US inflation scenario. On Tuesday, the Producer Price Index (PPI) data will be unveiled, providing information on the price changes at the producer level. Following suit, on Wednesday, the Consumer Price Index (CPI) data will be revealed, shedding light on the price fluctuations experienced by consumers.
As a crypto investor, I’m closely monitoring the upcoming inflation reports and keeping an eye on the Federal Reserve’s (Fed) next moves based on the latest data from the CME’s FedWatch tool. According to this information, there’s a 24.6% probability that the Fed will consider a rate cut during their July meeting, while the chance increases to 48.6% for September. Conversely, traders are anticipating a 96.5% likelihood of no change in rates during the upcoming June meeting. Analysts at QCP Capital have weighed in on this as well.
If the Federal Reserve doesn’t explicitly dismiss the idea of interest rate reductions or suggest raised rates instead, it appears that financial markets will persist in anticipating cuts. This outlook could maintain an optimistic mood in the market for some time.
To date, Bitcoin’s value has successfully maintained its position above significant support at $60,000. Nevertheless, despite repeated attempts, it has been unable to break through the resistance of $64,000, resulting in limited price movement within this range.
#Bitcoin is holding up onto the crucial level of support.
I’d favor holding here.
The setback of losing $60,000 could potentially be attributed to recent news events. However, such a significant loss implies that a critical test or assessment may follow in the range of $52,000 to $55,000.
Continue to accumulate and be patient.
— Michaël van de Poppe (@CryptoMichNL) May 13, 2024
As a cryptocurrency market analyst, I have observed the Bitcoin (BTC) price attempting to break above the resistance level of $64,000. However, if this effort fails, we could see a pullback towards the support level around $60,000. Noted crypto expert Michael van de Poppe has suggested that such a decline could lead to an additional 15% correction in BTC’s price.
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2024-05-13 16:12