Bitcoin Price Forecast: BTC Close to $68,000 Amid Federal Reserve Policy, FOMC, and Inflation Concerns
Bitcoin’s (BTC) current price is hovering around $67,850, with a daily low of $66,123. The strengthening US dollar, driven by positive economic data, is a key factor contributing to this downward trend.
Investors are adjusting their expectations for an imminent interest rate cut by the Federal Reserve in September due to a strong US labor market and ongoing inflation. This has led to a near one-month high for the US dollar, exerting significant pressure on BTC prices.
Looking forward, traders are exercising caution in placing strong bids as they await the latest US consumer inflation data and the highly anticipated outcomes of the Federal Open Market Committee (FOMC) meeting scheduled for later this week.
Impact of US Federal Reserve Policy on Bitcoin Price
Investors are revising their expectations for a Fed interest rate cut in September, given the robust labor market and persistent inflation.
This surge has pushed the US Dollar to nearly a one-month high. Market signals suggest a potential 25 basis points rate cut by the Fed later in the year, possibly in November or December.
Market participants will closely watch the release of the latest US consumer inflation figures and the crucial FOMC monetary policy decision.
The headline US Consumer Price Index is anticipated to ease to 0.1% in May from the previous 0.3%, while the annual rate is expected to remain at 3.4%, surpassing the Fed’s 2% target.
Meanwhile, Core CPI is forecasted to stay at 0.3% for the month and decrease slightly to a 3.5% annual rate from April’s 3.6%, indicating persistent inflationary pressures.
The US central bank is likely to maintain interest rates and unveil updated economic projections, including the influential “dot plot,” which could impact Bitcoin’s price.
Investors lower Fed rate cut expectations amid strong labor market and inflation
US Dollar approaches one-month high, impacting Bitcoin’s valuation
Upcoming inflation data and FOMC decisions crucial for Bitcoin’s price
Hence, the reduced likelihood of a Federal Reserve interest rate cut and expectations of ongoing inflation could strengthen the US Dollar, potentially affecting Bitcoin’s price as investors await signals from the FOMC meeting.
Peter Schiff Raises Concerns About Bitcoin’s Stability Amid ETF Debate
Economist Peter Schiff has expressed concerns about Bitcoin’s stability, particularly in light of potential institutional ETF buyers entering the market.
Schiff argues that relying on ETF purchases to drive Bitcoin prices could lead to increased market volatility, as ETF buyers may eventually sell their holdings.
This view contrasts with spot buyers who typically hold Bitcoin for the long term.
However, Schiff’s skepticism about Bitcoin is not new; he previously questioned its future amid the excitement over Ethereum spot ETF approvals and declared Bitcoin to be in a bear market despite the hype surrounding Bitcoin ETFs.
Schiff’s concerns regarding Bitcoin’s stability due to potential institutional ETF buyers could contribute to market uncertainty. The debate between Schiff and others showcases differing perspectives that could impact investor sentiment and Bitcoin’s price.
Bitcoin Price Forecast
Bitcoin is currently trading around $66,850, facing challenges in maintaining its position above the pivot point at $65,985, indicating a bullish Bitcoin price prediction. Immediate resistance is seen at $67,600, followed by further resistance levels at $69,200 and $71,000, suggesting potential barriers to upward movement in the near term.
On the downside, Bitcoin has immediate support at $64,600, with additional support levels at $63,450 and $62,200, crucial for preventing further declines and maintaining the current price structure.
The Relative Strength Index (RSI) stands at 37, indicating bearish momentum. Moreover, Bitcoin’s price is below the 50-day Exponential Moving Average (EMA) of $69,000, further supporting the bearish outlook.
In conclusion, Bitcoin remains bullish above $65,985, the pivot point. However, a break below this level could trigger a significant selling trend. Investors should closely monitor these key levels to assess the market’s direction.
Bitcoin Price Forecast
Bitcoin
is currently trading around $66,850, facing challenges in maintaining its position above the pivot point at $65,985 signalling a bullish
Bitcoin price prediction
. Immediate resistance is observed at $67,600, followed by further resistance levels at $69,200 and $71,000. These levels indicate potential barriers for upward movement in the near term.
On the downside, Bitcoin has immediate support at $64,600, with additional support levels at $63,450 and $62,200. These levels are crucial for preventing further declines and maintaining the current price structure.
The Relative Strength Index (RSI) is at 37, suggesting bearish momentum. Additionally, Bitcoin’s price is below the 50-day Exponential Moving Average (EMA) of $69,000, which further supports the bearish outlook.
Bitcoin Price Forecast
In conclusion, Bitcoin remains bullish above $65,985, the pivot point. However, if the price breaks below this level, it could trigger a sharp selling trend. Investors should closely monitor these key levels to gauge the market’s direction.