Bitcoin
Bitcoin Price: Markets are Chewing on Latest US CPI Reading Ahead of FOMC Minutes
Bitcoin price has been hovering around its highest level since June 6, 2022, for the past two days as investors digest the latest US Consumer Price Index (CPI) reading. At press time, BTC was trading slightly lower at $29,989 after hitting an intraday high of $30,486. Bitcoin, the largest cryptocurrency by market cap, has staged a significant recovery since the start of the year, jumping 81.33% in the year to date.
Economic Sentiment
Bitcoin price has staged a strong comeback this year, recently flipping the crucial resistance level of $30,000, hitting its highest level in 10 months. However, the digital asset was trading lower on Wednesday as markets chewed on the latest US CPI reading.
Data by the Bureau of Labor Statistics show that the Consumer Price Index rose 0.1% in March, down from 0.4% in February and below analysts’ expectations of a 0.2% gain. Over the last 12 months, the CPI increased by 5.0%, down from 6.0% in February and below the 5.2% increase expected by analysts.
The decline in the key inflation data has raised hopes that the Federal Reserve could hit a pause or put an end on its interest rate hike cycle soon. Contrary to market expectations, crypto prices fell off the back of the inflation data. Statistics by Coinmarketcap show that the global crypto market cap has slipped 0.64% to $1.23 trillion over the last day, while the total crypto market volume fell by 7.38%.
The US dollar also dropped sharply against the backdrop of a cooling inflation and hopes of a dovish Fed. The US Treasury yields also dropped on Wednesday with the 10-year Treasury yield falling to 3.406% and the 2-year Treasury plunging to 4.00%.
Focus has now shifted to the Federal Open Market Committee (FOMC)latest monetary policy meeting minutes slated for later today. With the decline in the latest CPI reading, markets expect the Federal Reserve to stall or end its interest rate hike sooner-than-expected.
Bitcoin Price Analysis
Bitcoin price has been moving higher for the past few days, climbing more than 6% in the past week. As I had predicted here, a move past the key level of $28,945.30 will have Bitcoin cruising past the $30k level.
On the daily chart, the digital asset has managed to remain above the 25-week and 50-week moving averages, as well as the 50-day and 200-day exponential moving averages. Its Relative Strength Index (RSI) is at 69, pointing to increased buying pressure. The Moving Average Convergence Divergence (MACD) indicator has remained bullish.
Therefore, dovish hints by the Fed will steer the Bitcoin price higher as buyers eye the next resistance level at $33,116. However, a move below the important support level at $28,945.30 will invalidate the bullish thesis.
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…
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