The Consumer Price Index (CPI) keeps up the trend of slightly elevated inflation in 2024, with a month-over-month increase of 0.3%. The Fed’s policymakers have raised their key interest rates to crush rising prices. Not surprisingly, Bitcoin’s seen a drop, trading at $ 61,422.31. This only goes to show that investors aren’t insensible to market sentiment—or fear, uncertainty, and doubt.
The cryptocurrency market is like a frog in boiling water. Federal Reserve Chair Jerome Powell announced a bunch of changes to unemployment and inflation. So more work will be ahead to combat the cost-of-living crisis. Traders eagerly anticipate the update of the United States macroeconomic data. Promising signs that inflation is starting to chill out could drive BTC back to $70,000.
Bitcoin’s future is relatively uncertain, even if it’s had a stellar year so far, and yes, the markets have avoided the consequences of a huge drop in the Producer Price Index (PPI). However, the economic climate remains favorable. Among the top cryptocurrencies, BNB is the most closely correlated with Bitcoin over the long run; you can easily convert BTC to BNB in a few clicks. If you’re up to date with the BNB price prediction, you already know it’s poised for rapid growth.
Jerome Powell Labeled PPI Data as Quite Mixed
The April print of the PPI came in line with expectations. Namely, 2,2%. The index for final demand less food, energy, and trade services moved up by 3.1%. In the past 12 months, that is. If you’re already familiar with the GDP, it might be worth taking a closer look at the PPI. Attention now turns to Jerome Powell, who is due to make a speech on the issue in question.
Speaking in Amsterdam at the annual meeting of the Foreign Bankers’s Association, the Fed Chairman said PPI data is quite mixed. Briefly, it’s necessary to shift focus on the revised numbers. All data is subject to revision up to 4 months after initially published. The Consumer Price Index (CPI) may be the catalyst that will shape the cryptocurrency market in 2024. Bitcoin could provide explosive returns by 2025.
Is Bitcoin Price Preparing for A New Move Higher?
Reducing inflation is good for risk-on assets like BTC, but pressure remains. According to QCP Capital, the market’s reaction to Powell’s speech will be muted. So, what’s going on? Are there any more lessons to learn? We could see some buying and selling over the next weeks as investors adjust their assumptions. You, too, can get in on the action.
Cryptocurrency traders can’t make up their minds as price movements continue. They’re still skeptical about what direction to take. Blocks of liquidity are returning to the order book before the economic outlook update. Long-term crypto and stock investor Jelle points to the main conditions for Bitcoin to become more dominant than ever – retesting the 100-day MA. Technical analysis works, but not when done wrong.
When it comes to predicting the future, there’s the bull case and the bear case. A bull market is one that’s on the rise. Ordinals and BRC-20 tokens could increase BTC’s overall utility and value. And let’s not forget about the Lightning Network, with over $250 million of liquidity, that uses micropayment channels to scale the blockchain. A bear market happens in an economy that’s receding.
There are concerns over Bitcoin’s dwindling security as miners have been withdrawing from the market since rewards have been halved. 3.125 BTC from 6.25. Roughly 51% of the hashing power may be vulnerable to attacks, maliciously disturbing the network’s operations. Of course, there’s the ongoing debate over the implications of Inscriptions. Users are less able to run full Bitcoin nodes due to increased storage and bandwidth requirements. Not to mention the possibility of illegal material being recorded onto the blockchain.
If The Coinbase Premium Index Turns Negative, Bitcoin Could Rebound
Until now, the Coinbase Premium Index has echoed Bitcoin’s price action. It’s a measure of the percentage difference between BTC’s price on Coinbase Pro and the price on Binance. The difference between Just so you know. Bitcoin prices on the 2 platforms show if traders are exerting more buying pressure on the cryptocurrency market compared to global investors. Price correction is necessary for BTC to take off to new levels.
If the indicator turns negative and reverses from a downward to an upward trend, Bitcoin’s price will bounce back. That’s probably the most exciting thing. You can observe a higher amount of selling on Coinbase because the cryptocurrency is trading at lower prices on Binance. An example of this played out earlier this year. At the time of writing, even if the Coinbase Premium Index is somewhat positive, it’s quite close to the zero mark.
History repeats itself. And if that happens, you’ll stand a better chance of success if you hold on a little while more and invest when BTC rebounds. Bitcoin might break its all-time high of $73,835.57. Staying on top of the latest news is important, but too much information can lead to confusion, indecisiveness, and stress. And eventually, mental fatigue. Remember: no one can predict the future, and nothing’s better than doing your own research. Always try to confirm updates with multiple sources.
Last Words
All in all, things are looking up for the American economy in the long run, meaning it remains a case of when not if. We’ll know for sure where we stand once Jerome Powell delivers his remarks. And the adjusted PPI is published based on current developments. The BTC price is at a crossroads, with traders now reinvesting profits in altcoins, and macroeconomic data will likely set the stage for what’s next. Technical analysis offers a glimmer of hope. However, it’s not a good idea to limit research to technical analysis alone.
Yes, Bitcoin could one day annihilate most of the roles the Fed plays, but not in the near future. Smaller tokens have experienced greater selloffs. Like memes coins – FLOKI, Book of Memes, and DOGE. BTC isn’t running alongside altcoins as it did years ago, so a big cryptocurrency rally could be on the way.
