The most valuable cryptocurrency in the world, which was facing selling pressure over the weekend, has now rebounded and moved back to $63,000 earlier in the day. With its market valuation at $1.235 trillion, Bitcoin is now traded at $62,715, up 2.96% as of publication. Amusingly, the daily trading volume of Bitcoin has climbed to almost $23 billion, which is quantified as a 76% increase. Ahead of the release of the US inflation statistics numbers this week, there has been an increase in Bitcoin trading activity. The latest economic figures prove the US economy is not as strong as last year.
The US job report showed slower growth compared to expectations. Other than timeliness and interest rate cuts vs. raises throughout the year, the information will focus on range. Ons in April. If this trend continues, the Federal Reserve may be reeled into decreasing interest rates to prevent a potential crash of the US economy. As a result, investors have been urging for more details to corroborate the government’s inflation predictions.
All Eyes on the US CPI Numbers
The market is expected to be educated more about the US inflation policy this week. The US will announce the PPI (Producer Price Index) on Tuesday and the CPI (Consumer Price Index) the following Tuesday. While the inflation data will be released this week, according to the CME’s FedWatch device, the event of a rate cut is mainly 24.6% at the July FOMC meeting and 48.6% at the September meeting. According to the interest traders, the chance of unchanged interest rates at June’s meeting is 96.5%. As stated by the QCP Capital analysts:
Until now, the Bitcoin Price Rises has been at the critical level, securing it at $60,000. Since it was not bulletproof at $64,000, it never traveled far. If there is no uptrend and Bitcoin stays around $64,000, it may fall below $60,000. According to top crypto researcher Michael van de Poppe, Bitcoin price surges may plummet 15% after losing $60,000.
How Long Will The BTC Price Rally Last?
A recent X story showed investors’ changing views on Bitcoin Price Rises as it rose from $62,000 to a greater level. Since this price increase, Binance traders are “going from liquidated shorts to longs,” according to on-chain analytics sellers. Rethinking this subject may boost Bitcoin’s popularity, but Santiment cautioned investors to remain cautious. In the blockchain company’s post:
Due to the “fear of missing out” (FOMO), investors may make irrational decisions on assets they expect to appreciate. This can temporarily boost the security’s price, but overwhelming fear of missing out leads to unsustainable positive trends and losses. Furthermore, people usually believe the opposite, which refers to situations when cryptocurrency values increase besides the current plunge. Hence, Bitcoin’s value is set to go down if many traders forecast a price rise.
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