Bitcoin
Bitcoin Price Analysis Ahead of US CPI Data and Fed Policy Meeting
Bitcoin price has been struggling to gain momentum above the $26,000 level for the past few days as investors brace for the US key inflation data and interest rates decisions by central banks. At the time of writing, the crypto leader was trading at $26,113.68. The asset’s total market cap, as well as the volume, has increased over the last day but remains below the highest level this year.
Fundamentals
The crypto market has been signaling signs of stability since the start of this week, following a massive sell-off last week on the back of the SEC lawsuit against Binance and Coinbase. The Bitcoin price has increased by more than 1.50% in the past week but remains below its crucial support level of $26,500. Ethereum, the largest altcoin by market cap, has increased slightly over the last day but remains 3.63% lower over the past week.
The US Securities and Exchange Commission sued Binance, the largest cryptocurrency exchange platform, and Coinbase last week, alleging that both failed to register as an exchange and of selling unregistered securities. A slew of altcoins, including Solana, Polygon, and Cardano were deemed as securities by the SEC.
Investors are now eyeing the US Consumer Price Index (CPI) data for May set to be released later today as the Federal Reserve commences its two-day policy meeting. The US Labor Department’s report is expected to show that the monthly inflation in May cooled to 0.2%, while the annual inflation dropped to 4.1%. A slowdown in inflation will give the Fed room to pause its interest rate hike campaign this month.
According to the CME FedWatch tool, money markets are pricing in an 80% chance that the Fed will pause its interest rate hike in June, pushing the US dollar lower. The European Central Bank (ECB) and the Bank of Japan (BoJ) are also expected to announce their monetary policy decisions this week. An environment of higher interest rates tends to be bearish for risk assets such as stocks and cryptocurrencies.
Bitcoin Price Outlook
The Bitcoin price has been under intense pressure for the past few days as the crypto market struggles to recover from its sharp sell-off last week. On the daily chart, the digital currency has continued to move below the descending trendline shown in yellow.
Bitcoin has also managed to move below and above the 50-day and 200-day exponential moving averages, respectively. It is also moving below the 50-day and 10-day simple moving averages. Its Relative Strength Index (RSI) is hovering slightly below the signal line, while the Moving Average Convergence Divergence (MACD) indicator remains bearish.
Therefore, the Bitcoin price is likely to trade sideways in the ensuing sessions as the uncertainty around the macroeconomic concerns continues to weigh on markets. A downward price correction will have sellers eyeing the next support level at the 200-day EMA at $25,283.85. Conversely, a move past the critical level of $26,500 will give bulls more room to push the price higher to $27,500.
BTC Price Chart
Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
-
Blogs6 years agoBitcoin Cash (BCH) and Ripple (XRP) Headed to Expansion with Revolut
-
Blogs6 years agoAnother Bank Joins Ripple! The first ever bank in Oman to be a part of RippleNet
-
Blogs6 years agoStandard Chartered Plans on Extending the Use of Ripple (XRP) Network
-
Blogs6 years agoElectroneum (ETN) New Mining App Set For Mass Adoption
-
Don't Miss6 years agoRipple’s five new partnerships are mouthwatering
-
Blogs6 years agoCryptocurrency is paving new avenues for content creators to explore
-
Blogs6 years agoEthereum Classic (ETC) Is Aiming To Align With Ethereum (ETH)
-
Blogs6 years agoLitecoin (LTC) Becomes Compatible with Blocknet while Getting Listed on Gemini Exchange
