Bitcoin Fluctuates Amid U.S. Inflation Data Release and Rate Cut Speculations
Summary:
Bitcoin experienced swift fluctuations on May 14, bottoming near $61,000 in response to U.S inflation data releases. The Producer Price Index figures for April, marking its third consecutive monthly increase, matched predictions sparking discussions about the Federal Reserve's possible management of interest rate cuts. With upcoming speeches and data releases, Bitcoin traders remain in a state of uncertainty as they await clearer market direction.
On May 14, Bitcoin (BTC) experienced swift fluctuations, bottoming near $61,000, in response to the release of inflation data in the U.S. The data reflected the volatile BTC pricing trends leading up to Wall Street's market opening. Cointelegraph Markets Pro and TradingView released this information.
The Producer Price Index (PPI) figures for April matched predictions at 2.2%, marking yet another monthly increment - this being the third in a row. An announcement from the U.S. Bureau of Labor Statistics confirmed that "The 12-month total, excluding food, energy, and trade service costs, increased by 3.1%. It's the greatest rise since the 12-month total ending April 2023, which saw a 3.4% surge."
Crypto markets managed to skirt the effects of a substantial PPI shortfall. Nevertheless, the outlook remained disadvantageous for risk assets. The Kobeissi Letter, a trading source, included in its response on X (previously Twitter), "PPI inflation has now increased three times in succession, unseen since April 2022. Another indication that the Fed cannot curb rates."
This observation was tied to the ongoing speculation about how the Federal Reserve may consider managing interest rate cuts. Everyone was awaiting the input of Fed Chair Jerome Powell, who was scheduled to deliver a speech at 10 AM Eastern Time., which was expected to further influence the market's direction.
Trading firm QCP Capital noted in its recent update to Telegram channel subscribers, "We predict a careful wording in Powell's speech today, resulting in a subdued market response." It was also suggested that the Consumer Price Index (CPI) figures released on May 15 "might finally provide the market with a clear direction."
Meanwhile, Bitcoin traders seemed uncertain as the price patterns remained within a range. As previously reported by Cointelegraph, large volumes of liquidity were making a return to the order book, bracketing the spot price prior to the release of macroeconomic data and the appearance of Powell.
Notwithstanding, in his most recent analysis, well-known trader Jelle pointed out that three conditions for an upward BTC trend have been fulfilled. These include the retesting of the 100-day exponential moving average, which currently sits at $60,409, as a support point. He also noted a bullish Moving Average Convergence/Divergence (MACD) indicator over daily time periods. Jelle further stated that an upwards scenario would be viable if the $65,000 level holds.
This article fails to provide investment advice or suggestions. Every investment and trading opportunity bears risk, so readers should undertake their own inquiries before making decisions.
Published At
5/14/2024 5:01:00 PM
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