Upcoming CPI Release and Fed Meeting: How Will Bitcoin Price Respond?

Mark your calendars for April 10th and 11th, 2024, as these dates are poised to have a significant impact on the US economy. On April 10th, the Consumer Price Index (CPI) for March will be released, providing insights into inflation. The following day, the Federal Open Market Committee (FOMC) meeting from March will be discussed, potentially influencing interest rates. This news holds great importance and could have implications for the cryptocurrency market, including Bitcoin.

These updates are not limited to Wall Street; they will also have an impact on digital assets, particularly Bitcoin. Whether directly or indirectly, the outcomes of these economic events could rattle the cryptocurrency market.

However, experts predict that interest rates will remain stable, indicating a favorable economic environment. This is positive news for cryptocurrencies, as stable rates make borrowing easier. With easier access to borrowing, more individuals may be inclined to invest in riskier assets like cryptocurrencies.

Furthermore, the countdown to the Bitcoin halving is underway, with less than 10 days remaining. During this event, the block reward will be reduced from 6.25 BTC to 3.125 BTC. This reduction will have significant implications for Bitcoin and the overall cryptocurrency market. The halving will decrease the yearly inflation rate to approximately 0.8%, resulting in fewer new Bitcoins entering the market and reducing potential selling pressure.

Despite the decreased emission rate, the high miner revenue in USD, driven by Bitcoin’s price appreciation, will maintain profitability for miners and ensure the network’s security remains strong.

Currently, Bitcoin is valued at around $71,539. Depending on the outcome of the economic news, we could witness a surge in Bitcoin’s price as investors seek riskier investments. It is crucial to monitor key levels such as $67,000 and the 50-day Exponential Moving Average (EMA) at approximately $57,757, as they will provide insights into Bitcoin’s future direction.

In summary, positive or neutral economic news from the CPI and FOMC could help stabilize the market. If inflation remains under control or decreases, investors may feel more confident in taking risks, which could benefit Bitcoin.

So, are you feeling bullish or bearish about Bitcoin this week?