This month, the price of Bitcoin has experienced a roller coaster-like fluctuation. After surging to nearly $70,000, it fell back to $63,000, contrasting with the continuous rise of the Nasdaq. According to CoinDesk, the Bitcoin (BTC) trend has formed a double top pattern, indicating a potential bearish sentiment before the release of key data that impacts the Federal Reserve’s interest rate path.
Markus Thielen, the founder of 10x Research, pointed out that despite the positive factors of the US election and CPI later this year, the market may still see steeper price corrections.
However, Greg Magadini, the Director of Derivatives at Amberdata, stated that the Federal Reserve’s preferred inflation indicator – the May Personal Consumption Expenditures (PCE) Price Index – will be released this week. Economists expect no change in the PCE to be announced this week, and the core PCE month-on-month increase will be revised down to 0.1%, lower than the previous value of 0.2%.
The month-on-month increase in core PCE has remained at its lowest level in three years. If inflation continues to slow down, the Federal Reserve will have more reason to cut interest rates again in September, thereby increasing market liquidity and boosting investors’ demand for risk assets such as stocks and Bitcoin, providing price support for these assets.
(This article is authorized to be reproduced from GT Radar)
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