The Bitcoin price is little moved as US inflation data eases price pressures
The Core Consumer Price Index (CPI) rose 0.2% MoM in July, in line with expectations and unchanged from June. The YoY metric rose 4.7%, slightly lower than expected. This data suggests that the US Federal Reserve is unlikely to hike interest rates again in September.
Positive signals for Bitcoin as core price pressures ease
If core price pressures remain stable, it implies a yearly inflation rate just above the Fed’s target. The market’s base case is for the Fed to start cutting interest rates by Q1 2024. This is a strong macro tailwind for Bitcoin, as the Fed’s rate hiking cycle is likely over and rate cuts are on the horizon.
Short and medium-term price predictions for Bitcoin remain upbeat
The improving fundamental outlook and strong technical setup are contributing to positive price predictions. The Fed’s rate hiking cycle is over, and interest rate cuts are expected. Additionally, the hype surrounding spot Bitcoin ETF applications from major Wall Street players is creating optimism.
Bitcoin’s strong technical setup and potential to blast past $30,000
Chart analysis suggests that Bitcoin could soon surpass $30,000 and retest yearly highs. However, the failure to surpass the $30,000 level is concerning. Without immediate bullish catalysts, Bitcoin may struggle to remain above its uptrend for the rest of the year. Short-term dips are possible but should be viewed as buying opportunities.
Other themes to watch: SEC regulation and global adoption
The SEC’s ongoing regulation of the US crypto industry could hinder adoption but could also drive investors towards Bitcoin as a safe haven. It’s important to monitor whether the US Congress can pass crypto legislation, particularly regarding stablecoins. Global adoption is trending positively, with key markets implementing pro-crypto legislation.
Hot Take: The easing of price pressures and potential interest rate cuts by the US Federal Reserve provide a strong macro tailwind for Bitcoin. Positive price predictions, strong technical setup, and the anticipation of spot Bitcoin ETF approvals further contribute to the optimistic outlook. However, Bitcoin’s failure to surpass $30,000 and the potential for short-term dips pose challenges. Monitoring SEC regulation and global adoption will also be crucial for Bitcoin’s future.
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