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 was trading higher on Tuesday, building on gains made in the previous trading session. At the time of writing, Bitcoin was trading 1.04% at $27,129.92 after clearing the crucial $27,000 level. The coin’s market cap has risen higher to $526 billion over the last day, while its total volume edged higher.
Macroeconomic Concerns
Data by Coinmarketcap shows that the global crypto market cap has increased by more than 1% over the last day to $1.13 trillion, while the total crypto volume jumped 20% over the same period. Bitcoin’s dominance also increased over the day.
Bitcoin’s price was gaining on Tuesday on the back of greenlight of some retail crypto trading by Hong Kong. Hong Kong’s Securities and Futures Commission announced on Monday that it would allow retail traders to trade certain crypto assets beginning June 1 on registered platforms. Markets widely anticipated the move amid Hong Kong’s broader efforts to become a global crypto hub.
Even so, Hong Kong’s new guidelines are in sharp contrast with China’s ban on crypto trading in 2021, as well as the continued US regulatory crackdown on cryptocurrencies since the fall of crypto exchange FTX. The Securities and Futures Commission of Hong Kong (SFC) has already licensed two digital asset platforms, Hash Blockchain and OSL.
Despite Hong Kong’s move to support crypto assets, concerns about the Federal Reserve’s monetary policy outlook have continued to weigh on markets…
Bitcoin price was headed for its worst week since November 2022 on Friday as volatility, buoyed by low liquidity continued to outweigh crypto markets. Bitcoin has dropped below the crucial support level of $26,500, changing hands at this level. The asset’s price has dipped by more than 11% in the past week, while its total market cap inched lower to $516 billion.
Fundamentals
Bitcoin price has been on a downward trend for seven consecutive days amid congestion in the network’s system and the regulatory crackdown on cryptocurrencies. The digital coin has been struggling to gain bullish momentum for the past few days. Bitcoin is currently up by 60.54% in the year to date, but its prices have remained volatile.
The crypto market has been battling low liquidity, regulatory crackdown, and macroeconomic concerns. Data by Coinmarketcap shows that the global crypto market cap has slipped to $1.11 trillion, down from $1.27 trillion earlier in March. Bitcoin’s dominance has also inched lower in the past few days.
The regulatory crackdown on cryptocurrencies has ramped up since the fall of crypto exchange FTX. Ripple Labs has been in a lawsuit against the US Securities and Exchange Commission (SEC) over the last year over concerns about its native coin XRP. Additionally, SEC recently warned Coinbase over potential securities law violations. Binance, the largest cryptocurrency exchange platform, was recently accused of violating trading rules by the Commodity Futures and…
Bitcoin price has been on a downward trajectory for five consecutive days on the back of network congestion on the asset’s blockchain. The asset has been changing hands at $27,600 for the past few days. Bitcoin’s total market cap has crashed to $533 billion, while its total volume inched lower. BTC has dropped by nearly 9% in the past five days and 3.90% in the past week.
Fundamentals
Bitcoin price has been in a five-day freefall, dropping below the crucial level of $28,000 as the coin’s network works through congestion. Bitcoin, the largest cryptocurrency by market cap, as well as Ethereum, has been struggling to gain bullish momentum for the past few days. Ethereum, the largest altcoin by market cap, has dropped below the important $1.9K level.
Binance, the largest cryptocurrency exchange, moved over $4 billion worth of Bitcoin earlier this week to its crypto wallets. This high volume of transactions resulted in congestion on Bitcoin’s blockchain, prompting Binance to halt Bitcoin withdrawals on its platform twice in 24 hours. Additionally, the congestion also saw transaction fees jump to their highest level in six years. Binance announced that it would work to enable the Bitcoin Lightning Network which will help in such situations in the future.
Focus has now shifted to the US Consumer Price Index (CPI) data slated to be published later on Wednesday. The reading is expected to show that the monthly…
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