Bitcoin Experiences Volatility Amid U.S. Inflation Data and Federal Reserve Outlook
Summary:
Bitcoin's value dipped on June 13, negating the prior day's gains amid anticipation of US inflation data. It witnessed a reverse trajectory after peaking at $70,000. Comments from Federal Reserve Chair Jerome Powell about not planning interest rate cuts appeared to unsettle risk assets. Powell suggested that persistently conservative fiscal policy could lead to an economic downturn. Meanwhile, information from Material Indicators showed that 'whales' or large Bitcoin holders play a significant role in price volatility, with $69,000 being identified as a critical support level for stabilization.
Bitcoin, or BTC, backtracked on June 13, wiping out gains from the day prior in anticipation of the forthcoming U.S. inflation data. Recorded data from Cointelegraph Markets Pro and TradingView indicated a U-turn in the BTC price movement after a high of $70,000, which was followed by a dip to $66,983 on Bitstamp. At the time of documentation, Bitcoin was experiencing a day-on-day decline of around 1.3%.
Anticipatory buzz was building due to the Consumer Price Index (CPI) results falling below expectations, and the Federal Reserve maintaining a predictably conservative stance on interest rate policy. However, Jerome Powell, the Chair, unsettled the risk assets with his repeated assertion that discussions on interest rate reductions were not underway.
Powell stated during a post-event press conference, as reported by CNBC and other outlets, that a persistently conservative policy would eventually lead to a tangible downturn in the economy. He emphasized that since the rate increase, they have always indicated potential reductions at a certain point.
The market reduced its predictions of a reduction in the September meeting of the Fed by approximately 10%, according to data from the CME Group’s FedWatch Tool. A financial pundit, Tedtalksmacro, expressed his views on X (formerly Twitter) that the market had anticipated this hawkish stance from the day's Federal Open Market Committee (FOMC), and the continuing disinflation, as indicated by the CPI data, was the key takeaway from the session.
Using Material Indicators to evaluate BTC price trends, the role of Bitcoin 'whales' in the day's price fluctuations became evident. The post suggested that this was further evidence that price volatility was being manipulated through fluctuations in the liquidity of the order book, with U.S. macro data playing a part. It further suggested that in order for Bitcoin to stabilize, $69,000 was the pivotal support level to aim for. Until this becomes a reality, the prediction was that Bitcoin would remain within its current price range.
This news piece does not offer investment guidance or suggestions. Any investments or trades carry risks, and readers are advised to carry out their own research prior to making a decision.
Published At
6/13/2024 12:32:01 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.