Bitcoin Price Prediction: BTC Skyrockets to $67,900; Mixed US Inflation Data & Fed Rate Cut Hopes Drive Rally
Bitcoin (BTC) has continued its upward trajectory, reaching approximately $67,900. The Core PCE Price Index, the Federal Reserve’s preferred inflation measure, rose by 0.2% month-over-month in April, meeting expectations but slightly below the previous month’s 0.3% increase. While this modest rise may alleviate some inflation concerns for the Fed, consistent readings are necessary to support the possibility of a rate cut by September.
The Chicago PMI dropped to 35.4, below the anticipated 41.1, indicating weaker manufacturing activity. These mixed data points indicate a complex economic outlook, with inflation easing but economic activity slowing, thus fueling a bullish bitcoin price prediction.
US Inflation Data and the Potential for a Fed Rate Cut
Bitcoin (BTC) has maintained its upward momentum, surging to around $67,900. The Core PCE Price Index, the Federal Reserve’s preferred inflation measure, increased by 0.2% month-over-month in April, meeting expectations but falling short of the previous month’s 0.3% rise.
While this slight increase may alleviate some inflation concerns for the Fed, consistent readings are required to support the possibility of a rate cut by September.
Core PCE Price Index m/m:
0.2% (expected 0.3%)
Chicago PMI:
35.4 (previous 37.9)
The Chicago PMI fell to 35.4, below expectations of 41.1, indicating weaker manufacturing activity. These data points suggest a mixed economic outlook, with signs of easing inflation but a slowdown in economic activity.
These data have an impact on the price of bitcoin as the likelihood of a Fed rate cut by September increases if inflation continues to moderate. This could weaken the US dollar and support bitcoin price gains.
Disappointing US GDP Data Supports Bitcoin Price
The increase in BTC price is also largely due to the weakening US dollar, which lost traction following disappointing US GDP data. The lower GDP figures led traders to anticipate a Federal Reserve rate cut this year, putting pressure on the dollar and boosting BTC.
Key Points:
– Chicago Fed President Austan Goolsbee expressed concerns about housing inflation and a strong labor market.
– Atlanta Fed President Raphael Bostic suggested that a rate cut in July is unlikely due to slow progress in inflation.
– New York Fed President John Williams is optimistic that inflation will ease later this year.
– US economic data showed that GDP grew at an annualized rate of 1.3% in Q1, down from the previous 1.6% but in line with expectations.
– Additionally, US weekly Initial Jobless Claims rose slightly to 219K, above the market consensus of 218K. These factors, combined with the anticipation of a Fed rate cut, have strengthened Bitcoin’s appeal.
Bitcoin Price Volatility Influenced by Mixed Sentiments in the Spot Bitcoin ETF Market
The Spot Bitcoin ETF market exhibited mixed investor sentiments on May 30, 2024, with total investments amounting to $48.71 million.
Notably, Blackrock’s iShares experienced a modest inflow of $2 million, while Fidelity saw a significant inflow of $119 million, indicating strong investor trust. Bitwise also attracted $26 million, indicating growing confidence in its offerings.
Key Points:
– Blackrock’s iShares: $2 million inflow
– Fidelity: $119 million inflow
– Bitwise: $26 million inflow
– ArkShares: $100 million withdrawal
– Invesco: $2 million inflow
However, ArkShares faced a substantial withdrawal of $100 million, suggesting potential shifts in investor sentiment. Invesco maintained steady interest with a $2 million inflow.
Meanwhile, WisdomTree, Grayscale, Franklin, Valkyrie, and VanEck saw no new investments, likely due to competitive pressures and evolving investor preferences.
These mixed investment flows in the Spot Bitcoin ETF market indicate varied investor sentiment, which could lead to increased bitcoin price volatility. Strong inflows boost market confidence, while significant withdrawals create uncertainty, influencing bitcoin’s price dynamics.
Bitcoin (BTC/USD) Technical Outlook: June 1, 2024
Bitcoin (BTC/USD) is currently trading at approximately $67,900, representing a slight increase of around 0.25%.
The pivot point, indicated in green, is set at $68,100 and serves as a critical indicator for potential market direction. Immediate resistance levels are positioned at $68,800, $69,800, and $70,600.
On the downside, immediate support can be found at $67,500, with further support at $66,600 and $65,900.
Technical indicators show the Relative Strength Index (RSI) at 46.94, suggesting a neutral to bearish sentiment.
Additionally, the 50-day Exponential Moving Average (EMA) aligns with the pivot point at $68,100, indicating this level as a significant dynamic support.
The outlook for bitcoin remains bearish below the pivot point of $68,100. A breach below the immediate support at $67,500 could lead to further declines, while a break above $68,800 may shift the sentiment towards a bullish bias, targeting higher resistance levels.
Bitcoin Price Prediction 2024 – 2034
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