Bitcoin Price Forecast BTC Approaching 68000 Amid Fed Policy FOMC and Inflation Concerns

Bitcoin Price Forecast: BTC Approaches $68,000 amidst Fed Policies, FOMC, and Inflation Concerns
Arslan Butt
Last modified:
June 12, 2024 07:22 EDT
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4 minutes read
Bitcoin Price Forecast
Bitcoin (BTC) is currently priced at around $67,850, with a daily low of $66,123. The strength of the US dollar, driven by positive economic data, is a key factor contributing to this downward trend.
Investors are adjusting their expectations regarding a potential interest rate cut by the Federal Reserve in September, as the robust US labor market and ongoing inflation are prompting a shift in sentiment. Consequently, the US dollar has surged to nearly a one-month high, exerting significant pressure on BTC prices.
Looking forward, traders are treading cautiously as they await the latest US consumer inflation data and the outcomes of the Federal Open Market Committee (FOMC) meeting scheduled for later on Wednesday.
Influence of US Federal Reserve Policy on Bitcoin Price
Investor expectations for a Federal Reserve interest rate cut in September are diminishing due to a strong labor market and inflationary pressures.
This has led to the US Dollar reaching a nearly month-high level. Market indicators suggest that the Fed may consider a modest 25 basis points rate cut later in the year, possibly in November or December.
Traders 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 projected to slightly 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 remain at 0.3% for the month and slightly decrease 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 disclose updated economic projections, including the influential “dot plot,” which could impact Bitcoin’s price.
Investors revise expectations of a Fed rate cut 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 probability of a Federal Reserve interest rate cut and expectations of ongoing inflation could bolster the US Dollar, influencing Bitcoin’s price as investors await signals from the FOMC meeting.
Bitcoin Stability Concerns Raised by Peter Schiff Amid ETF Debate
Economist Peter Schiff has expressed concerns about Bitcoin’s stability, particularly with the entry of potential institutional ETF buyers.
Schiff has argued that relying on ETF purchases to drive Bitcoin prices could heighten market volatility, as ETF buyers may eventually offload their assets.
In contrast, Schiff’s stance has faced resistance from those who believe that ETF buyers are typically long-term investors, differing from spot traders. Schiff’s skepticism about Bitcoin is not new; he had previously questioned its future amidst the excitement over Ethereum spot ETF approvals and had claimed that Bitcoin was in a bear market despite the buzz surrounding Bitcoin ETFs.
Schiff’s apprehensions about Bitcoin’s stability due to potential institutional ETF buyers could contribute to market uncertainties. The debate between Schiff and others showcases varying viewpoints that could impact investor sentiment and influence Bitcoin’s pricing.
Peter Schiff warns of ETF-induced volatility that could destabilize Bitcoin
Doubts persist about Bitcoin’s future despite ETF anticipation
Investor sentiment divided on Bitcoin stability amid ETF discussions
Bitcoin Price Forecast
Bitcoin is currently hovering around $66,850, encountering obstacles in maintaining its position above the pivot point at $65,985, signaling a bullish Bitcoin price forecast. Immediate resistance is observed at $67,600, followed by further resistance levels at $69,200 and $71,000, indicating potential barriers to upward movement in the near future.
On the downside, Bitcoin has immediate support at $64,600, with additional support levels at $63,450 and $62,200, critical 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 sharp downward trend. Investors should closely monitor these key levels to gauge the market’s direction.
Bitcoin Price Forecast
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