Additionally, the ongoing regulatory scrutiny and government intervention in the cryptocurrency market continue to be a significant factor in price movements. The recent crackdown on crypto mining in China has caused a significant drop in Bitcoin’s hash rate, which could potentially impact its price.
Furthermore, the increasing adoption of cryptocurrencies by mainstream companies and institutions, such as Tesla and PayPal, is also driving market sentiment. As more companies accept cryptocurrencies as a form of payment, it could lead to increased demand and higher prices.
Overall, the cryptocurrency market remains highly volatile and unpredictable. Traders and investors must stay up-to-date with the latest news and developments to make informed decisions about their investments.
The price of BTC fluctuates below $26,000 following the release of CPI, while investors anticipate the Fed’s decision on interest rate hikes.
The release of the May Consumer Price Index (CPI) led to a temporary boost in Bitcoin’s value as inflation showed signs of decline. The cryptocurrency was trading at $26,008, representing a less than 0.50% decrease in the hour following the announcement. While both the US economy and Bitcoin are currently performing well, any potential issues caused by tomorrow’s interest rate decision or an impending recession in the US could be beneficial for crypto assets. Many experts believe that the Federal Reserve will maintain its current pause on interest rates for the full year 2023, as it shifts its focus from lowering inflation to preventing a recession ahead of the 2024 US presidential election campaign. However, higher interest rates could prove to be problematic for both the economy and cryptocurrency markets.
Bitcoin Price Prediction
Bitcoin is currently encountering resistance at the $26,250 level and relying on support at around $25,500 to determine its future direction. The 50-day Exponential Moving Average (EMA) at $25,800 serves as a support level, but a downward triangle pattern indicates a bearish outlook. If the support level of $25,500 is breached, it could intensify selling pressure and potentially push the price towards support levels at $24,940, $24,710 or even $24,385. Traders are closely monitoring the upcoming FOMC meeting and Fed Rate announcement as they may have an impact on Bitcoin’s price.