Bitcoin Price Prediction: BTC Approaching $70,000 as FOMC Meeting Minutes Expose Worries About Inflation

Bitcoin Price Forecast: BTC Approaching $70,000 as FOMC Meeting Minutes Reveal Inflation Concerns


Arslan Butt
Last updated:
May 22, 2024 21:29 EDT
|
4 min read


Bitcoin Price Forecast
During their recent meeting, Federal Reserve officials expressed increasing worry about inflation, causing hesitation among many members to proceed with interest rate cuts.
The decision by the Federal Open Market Committee (FOMC) to maintain the short-term borrowing rate at 5.25%-5.5%, a 23-year high, has significant implications for the economy and the Bitcoin price forecast. Let’s delve into the details.
Fed Officials Express Inflation Concerns, Unlikely to Reduce Interest Rates Soon
Federal Reserve officials expressed growing concern about inflation during their most recent meeting, with many members hesitant to move forward with interest rate reductions.
Meeting Details
: The minutes from the April 30-May 1
Federal Open Market Committee (FOMC)
meeting revealed worries about the persistence of inflation. Despite some easing over the past year, recent data showed significant increases in both goods and services prices.
Fed’s Target
: The Fed aims for a 2% inflation rate, but current indicators show prices increasing well above this target. This persistent inflation has led some policymakers to consider further tightening of monetary policy if necessary.
The FOMC decided to keep the short-term borrowing rate in the 5.25%-5.5% range, a 23-year high. The decision was based on data indicating continued solid economic growth.
Since then, there have been minor improvements, with the April consumer price index showing a 3.4% annual inflation rate, slightly lower than March.
However, consumer sentiment surveys indicate rising concerns about inflation.
Risks and Concerns
Fed officials noted several upside risks to inflation, including geopolitical events and the impact on low-income consumers. Some attributed early-year inflation increases to seasonal factors, while others warned against dismissing these broad-based moves.
Concerns were also raised about consumers turning to riskier financing methods, like increased credit card use and buy-now-pay-later services.
Despite optimism about growth prospects, officials expect some moderation this year. They believe inflation will eventually return to the 2% target but are uncertain about the timeline and the impact of high interest rates.
Market Expectations
Since the meeting, Fed officials have maintained a cautious tone. Fed Governor Waller emphasized the need for “several months” of positive data before considering rate cuts.
Chair Jerome Powell echoed the need for patience, suggesting the Fed will wait for restrictive policies to curb inflation. Futures pricing indicates a 60% chance of the first rate cut in September, with lower expectations for a second cut in December.
Impact on Bitcoin: Rising interest rates could decrease Bitcoin’s appeal as an inflation hedge, potentially leading to price volatility.
Bitcoin Price Forecast
Bitcoin (BTC/USD)
is currently trading at $69,553, showing a modest increase of 0.63% over the last 24 hours. The pivot point, marked by the green line at $69,219, serves as a crucial level, indicating the primary trend direction.
Above this pivot point, the immediate resistance levels to watch are $72,030, $73,734, and $75,480. These levels represent potential barriers where selling pressure could increase, challenging further upward movement.
On the downside, support levels are identified at $67,549, $65,949, and $63,901. These levels could provide a cushion against declines, offering potential entry points for buyers.


Bitcoin Price Forecast – Source: Treadingview
The presence of an upward trendline further bolsters this bullish outlook. However, a break below the pivot point of $69,675 could trigger a sharp selling trend.
In conclusion,
Bitcoin price forecast
remains bullish at $69,675, but a breach below this level could lead to significant downside pressure.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.