Just a day before the US releases PPI and CPI inflation figures, Bitcoin’s daily trading volume has surged 76% in the last 24 hours. A positive development could lead to a break above $64,000.
After facing some selling pressure last weekend, Bitcoin (BTC), the world’s largest cryptocurrency, rebounded above $63,000 this morning. As of press time, Bitcoin is trading at $62,715, up 2.96%, with a market capitalization of $1.235 trillion.
What’s interesting is that Bitcoin’s daily trading volume increased by 76%, surpassing $23 billion. This surge in BTC trading activity comes ahead of the release of US inflation data figures ahead of the week.
Current economic data shows that the United States is experiencing an economic slowdown compared to last year’s strong performance. U.S. employment figures for the month of April showed weaker growth than market estimates.
If this situation continues, the Federal Reserve may end up cutting interest rates to prevent a serious downturn in the U.S. economy. As a result, investors are looking for confirmation of the continued existence of inflation. This data can provide additional clarity on the size, timing, and probability of interest rate cuts throughout the year.
All attention is focused on the US CPI figures
This week the market will get more insight into US inflation numbers. The United States is expected to make an announcement on Tuesday. that much producer price index We share the Consumer Price Index (CPI) on Wednesday, a day after (PPI) data.
Before this week’s inflation report, CME’s FedWatch tool predicted a 24.6% chance of a rate cut at the July Federal Open Market Committee (FOMC) meeting and a 48.6% chance of a rate cut at the September meeting. Interest traders are expecting a 96.5% chance of no interest rate change at the June meeting. An analyst at QCP Capital wrote:
“Unless the Fed clearly rules out a rate cut or hints at a rate hike, markets will likely continue to price in a cut. These expectations are likely to keep the market positive for some time to come.”
So far, the price of Bitcoin has remained above the critical support level of $60,000. However, on the bright side, it has always failed to surge above $64,000 and is still trading in a narrow range.
#Bitcoin We maintain a critical level of support.
I prefer staying here.
The $60K loss could have been due to the news item, but losing that level suggests a test between $52-55K is next.
Keep accumulating and be patient. pic.twitter.com/86FWbn614L
— Michael van de Poppe (@CryptoMichNL) May 13, 2024
However, if BTC price fails to deliver a clear break above the $64,000 resistance, we could see further declines below $60,000. Popular cryptocurrency analyst Michael van de Poppe said that losing $60,000 could lead to a further 15% correction in BTC price.
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