Bitcoin Evades Drop Amid New US Inflation Data; Bullish Outlook Maintained
Summary:
Bitcoin (BTC) evaded a potential dive to $69,000 on June 13 as investors responded to new US inflation data. BTC reached $68,433 on Bitstamp before experiencing a drop, coinciding with a lower than expected US Producer Price Index (PPI) for May, indicating reducing inflation rates. Responses to jobless claims beating forecasts were also lukewarm. Traders speculated on substantial shifts in market sentiment during the US session and commented on the market's strong performance. Trading firm QCP Capital expressed optimism about US fiscal policies for the rest of 2024, expecting a rate cut in September. The anticipated approval of spot Ether exchange-traded funds (ETFs) and potential rate cuts later in the year underpin a structurally bullish outlook.
On June 13, Bitcoin (BTC) narrowly dodged another downfall to $69,000 as the Wall Street opened its gates, reacting to the most recent inflation data from the United States. BTC/USD 1-hour chart by TradingView tracked Bitcoin's shaky hike to $68,433 on Bitstamp, which was quickly followed by a dip. This fluctuation coincided with the U.S. Producer Price Index (PPI) for May indicating figures below the anticipated values, hinting at subsiding inflation rates. This information is generally regarded as encouraging news for risk assets and digital currencies. However, the crypto market's response was rather tepid compared to the preceding day's data releases.
Similarly, the jobless claims, surpassing the predicted figures, failed to stir any enthusiasm among traders. Trader Skew speculated on the possible drastic changes in the crypto mood over the U.S. session. He also pointed out that the U.S. dollar's decline after the PPI announcement did not cause significant turbulence. As he remarked on the currently unsure market atmosphere, the U.S. dollar index (DXY) was recorded at 104.79, recovering from a minor drop to 104.64.
Another trader, Dann Crypto Trades, commented on Bitcoin's standard behavior and looked forward to its further moves, noting strong stock market performance. Looking at the wider picture for Bitcoin and Ether (ETH), QCP Capital appeared optimistic about U.S. fiscal policies for the rest of 2024. It expressed expectations of a possible rate cut in September due to the ambiguity of the Fed's dot plot, coupled with a wait-and-see approach for meetings in November and December.
Anticipating the U.S. Federal Reserve's rate cuts and the approval of spot Ether exchange-traded funds (ETFs), QCP asserts a fundamentally bullish stance for the remainder of the year. Readers, however, are reminded to conduct their due diligence as every investment decision comes with inherent risks, and this piece does not provide investment advice or recommendations.
Published At
6/13/2024 4:47:18 PM
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