On August 13, Bitcoin (BTC) remained below $60,000 despite global macroeconomic events.
Bitcoin Ignores Slump as Japan Rebounds
According to data provided by Cointelegraph Markets Pro and TradingView, there was a sluggish opening on Wall Street for BTC/USD, which was in stark contrast to the stock markets.
The bullish sentiment was led by Japan, where the Nikkei 225 completely recovered its record losses from earlier this month. The index closed at 36,232 points, up 3.45% on the day.
U.S. stocks also got off to a positive start, with the S&P 500 and Nasdaq Composite up 0.8% and 1.4%, respectively, in the first hour.
The strong performance was aided by the producer price index (PPI) for July, which was lower than expected, which was a key driver of bets on lower interest rates and increased capital inflows into risky assets.
The latest data from CME Group’s FedWatch Tool showed that the market supports a larger 0.5% rate cut by the Fed at its next meeting in September. Before the PPI release, the market was expecting a 0.25% cut.
Commenting on the cryptocurrency’s reaction, popular trader Daan Crypto Trades noted that macro data releases often lead to short-term fake moves.
“It was just PPI, so there wasn’t much movement,” he admitted in a post on X.
“We tend to see a similar phenomenon in CPI, which often leads to much larger (and slightly slower) whipsaw movements.”
Daan Crypto Trades mentioned the Consumer Price Index (CPI) that will be released on August 14th.
“PPI is not a bad start. It’s coming in a bit low, which I think is a good level. It gives the Fed room to start cutting (which would be bad if inflation were running high).” Part of the additional post was added.
“But it’s not going to go into the negative territory yet where we need to fear deflation.”
Looking at exchange order book liquidity from monitoring agency CoinGlass, bids are increasing from the $58,000 range, while ask prices are strengthening in the $60,000 range as spot prices rise slightly.
“Should we test $57,600?” asked X.
Bitcoin Price Could Reach All-Time High Next Month
Continuing with the macroeconomic theme, trading firm QCP Capital suggests that the CPI will be the market highlight this week.
Related: Bitcoin Price Could Take 3 Months to Catch Up with Gold Rally – Analyst
Investors “remain cautious,” the company said in a recent announcement to subscribers of its Telegram channel.
“The Fed will closely watch inflation numbers to get guidance on whether to cut rates by 50 or 25 basis points in September,” the report said.
Michael van de Poppe, founder and CEO of trading firm MNTrading, has set September as the date when Bitcoin will hit a new all-time high, continuing a popular narrative that was in place until the price crashed to a six-month low in early August.
“Bitcoin had a huge bounce last week,” he wrote, along with a chart showing key levels.
“However, I would like to see $60k broken. If that happens, I am confident we will see new all-time highs in September/October.”
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.