Bitcoin is poised for a significant price drop prior to the release of CPI data and the FOMC decision
Key Takeaways
Experts are forecasting a substantial drop in Bitcoin prices in anticipation of the release of CPI data and the FOMC decision.
Rising interest rates and lackluster economic indicators are dampening enthusiasm for Bitcoin and causing prices to decline.
Bitcoin is projected to test the support range of $64,000-$65,000 as the FOMC considers interest rate adjustments.
The crypto market experienced a downturn at the start of the day following calls from Senators Elizabeth Warren, Jacky Rosen, and John Hickenlooper for the FED to lower interest rates. Bitcoin saw a 4% decrease in value over the last 24 hours, dropping to $66,700, while Ethereum fell to $3,520.
What’s on the Horizon?
Prominent crypto analyst Michaël van de Poppe emphasizes the importance of this week as the market braces for the release of new CPI data and the FOMC’s interest rate decision on June 12.
Market corrections are common before significant events like these, followed by a bounce back in prices, as seen in previous months.
Concerns over the FED maintaining high interest rates have intensified selling pressure, with expectations of two rate cuts by the end of 2024 diminishing. The possibility of a rate cut in September appears slim amidst uncertainties in the US and weak economic data, leading to decreased interest in volatile assets like Bitcoin.
Historically, Bitcoin and other cryptocurrencies tend to correct themselves prior to such events before rebounding. This trend suggests that traders and investors are exercising caution ahead of the economic data.
Opportunities for Buying Bitcoin
With Bitcoin’s price struggling to surpass the $71,000 level, van de Poppe identifies key price levels and areas of interest for investors. He anticipates a test of the support range between $64,000 and $65,000.
This range is crucial as it could serve as a solid foundation for Bitcoin’s price to stabilize before attempting to rise again. If the price dips below this support, Poppe highlights a significant demand zone between $54,000 and $56,000.
The potential turnaround in Bitcoin’s price is expected in light of the upcoming FOMC meeting and the release of new CPI data.