Can Bitcoin (BTC) Price Escape Consolidation Under $71,000?
The post Can Bitcoin (BTC) Price Escape Consolidation Under $71,000? appeared on BitcoinEthereumNews.com.
Bitcoin’s (BTC) price is known to drive the crypto market, but the king of cryptocurrencies tends to react to macro-financial conditions. Since these conditions have been rather positive lately, it seems like BTC could have a shot at escaping consolidation and marking a new ATH. Impact of the US Financial Markets Bitcoin’s price has been reacting positively to the Federal Reserve’s recent shift in tone. Earlier this week, the inflation rate, measured by the Consumer Price Index (CPI), softened to 3.3% year over year. Soon after, the Federal Open Market Committee (FOMC) also announced that it would keep the interest rates unchanged at 5.25% to 5.50%. On Thursday, the Producer Price Index (PPI) also came in at 2.2% on a yearly basis, as per the forecasts and lower than April’s 2.3%. US PPI. Source: Skew – X The combined positive outlook has created favorable bullish conditions for Bitcoin’s price. The research team at Bitfinex also believes that BTC is looking at growth in the long term. Bitfinex analysts told BeInCrypto, “Since the Fed decided to maintain current rates, Bitcoin might experience short-term volatility as the market adjusts to the news. However, the overall trend could remain positive, especially if the broader economic outlook continues to improve.” Discussing about the potential impact on the ETF flows, the analysts stated, “ETF flows may stabilize with a hold decision, as investors await clearer signals from the Fed’s future policy moves. Spot Bitcoin ETFs might see steady inflows, but the momentum could be less pronounced compared to a rate cut scenario. The launch of Ether ETFs could still attract significant interest, potentially leading to diversified investments across both Bitcoin and Ethereum ETFs.” Thus, Bitfinex analysts believe that Bitcoin could consolidate around current levels or experience moderate gains as investors remain optimistic about future rate…
Filed under: News - @ June 14, 2024 6:28 am