Bitcoin Price Rises Above $63,000 Before US CPI Data

Bitcoin Price Rises, the most valuable cryptocurrency in the world, recovered from selling pressure over the weekend and reclaimed the $63,000 mark earlier today. With a market valuation of $1.235 trillion, Bitcoin is trading at $62,715, up 2.96% as of press time. Interestingly, the daily trading volume of Bitcoin has increased to almost $23 billion, a 76% increase. Ahead of this week’s release of US inflation statistics numbers, there has been a jump in Bitcoin trading activity. Current economic data shows the US economy has slowed down compared to last year’s strong performance.

The US employment data for April showed slower growth than the market anticipated. To avert a catastrophic collapse of the US economy, the Federal Reserve may be compelled to lower interest rates if this trend persists. This has led investors to seek further evidence of inflation’s persistence. Additional information regarding the magnitude, timeliness, and likelihood of interest rate reductions throughout the year may be provided by this data.

All Eyes on the US CPI Numbers

The market will learn more about US inflation figures this week. The US will release the PPI (Producer Price Index) numbers on Tuesday and the CPI (Consumer Price Index) numbers on the following Wednesday. Inflation data is due out this week, but according to the CME’s FedWatch tool, a rate cut is likely at 24.6% at the July FOMC meeting and 48.6% likely at the September meeting. There is a 96.5% chance that rates will remain unchanged at June’s meeting, according to interest traders. Written by analysts at QCP Capital:

Until now, the Bitcoin Price Rises has remained above the critical $60,000 support levels. On the plus side, it constantly trades in a restricted range because it has never been able to burst over $64,000. Additional declines below $60,000 may be in store for Bitcoin price if a convincing breakout over $64,000 resistance is not forthcoming. Losing $60,000 might cause Bitcoin Price Rises to drop another 15%, according to prominent crypto researcher Michael van de Poppe.

How Long Will The BTC Price Rally Last?

Sentiment noted in a recent X platform article that investors’ stances and sentiments on Bitcoin had changed when the price surged past $62,000. Following the most recent price surge, traders on the Binance platform are reportedly “going from liquidated shorts to longs”, according to the on-chain analytics site. While this change in attitude could mean more bullishness for the leading cryptocurrency, Santiment has warned investors to be wary of jumping on the Bitcoin bandwagon. According to the blockchain company’s post:

Investors can act impulsively when they see assets expected to appreciate, a phenomenon known as “fear of missing out” (FOMO). Although it might boost the asset’s price temporarily, too much fear of missing out causes positive trends that can’t be sustained and eventually leads to declines. Also, contrary to what most people think, crypto values often go up when they go down. For this reason, the value of Bitcoin is likely to fall if most traders are predicting an increase in its price.

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