Bitcoin Trades at $68,400 Amid Easing Inflation

Bitcoin is trading at $68,400, influenced by recent data. Investors are skeptical of the Fed's approach to controlling inflation.

Azcnews Bitcoin Trades At $68,400 Amid Easing Inflation

Bitcoin has fallen to $68,400 at the time of writing, which is not unexpected. Recent data has influenced this increase. However, investors do not share the Fed’s outlook on combating inflation at the beginning of 2024. Additionally, risks such as MTGOX have led to profit-taking at higher levels.

Why are cryptocurrencies rising?

The Q1 US GDP data has declined in line with expectations. Jobless claims were 2,000 higher than anticipated. As employment decreases, economic growth will balance out, and inflation will decrease. If this scenario unfolds, the Fed might implement the predicted 75 basis point rate cut for this year. Otherwise, various possibilities could arise.

fed faiz yorum

The economy could slow down, forcing the Fed to ease its tight monetary policy. However, it cannot do so if inflation does not decrease. The Fed might have to cut interest rates despite persistent inflation if the risk of economic recession increases, causing cryptocurrency prices to rise while inflation control takes longer.

The economy is slowing, and if the Fed doesn’t cut interest rates, cryptocurrencies might decline further amid rising prices and increasing unemployment. Thus, inflation will decrease, and the economy will grow at a reasonable rate. Noted trader Skew has interpreted the latest data positively. According to the CME Group’s FedWatch tool, the market does not anticipate a rate cut before September.

Related: Vanguard Continues to Reject Ethereum ETF, Expresses Hostile Stance

Comments on Cryptocurrencies

Btcusdt
Btcusdt

Recent data from CoinGlass indicates that resistance for BTC has significantly increased to $69,000 today. Meanwhile, liquidity at the support level of $66,800 has also strengthened. A report from Moses Asset on May 23 noted that “the easing of financial conditions” would lead to more gains in risk markets. The report also reassured anxious investors about the downturn, describing it as “merely a pause in the bull market trend.”

“If credit remains relatively cheap and available, it will be reflected in positive movements across speculative asset classes. This includes sectors like high-yield bonds, which continue to reach new highs. The next sector I am monitoring for confirmation is cryptocurrencies, particularly Bitcoin.”

2.0/5

(1 vote)
  1. Avatar of Hassan M auwal
    Hassan M auwal

    Which comment section I no understand for you now

  2. Avatar of Yasir adamu yakubu
    Yasir adamu yakubu

    Bitcon is too much good

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