Bitcoin Price Holds Above One-Month Low Amid U.S. Economic Data
Thursday’s rally to a new 13-month high of $31,800 has now more than been fully nullified. The price of bitcoin (BTC) at $29,780 is barely holding above a one-month low as Tuesday morning’s economic data confirms the U.S. economy remains in growth mode and traders brace for what’s now a near 100% certainty of another Federal Reserve rate hike next week.
Key Points:
- Retail sales report shows some weakness, but control group indicates strong consumer spending
- The retail sales “control group” rose 0.6% in June, more than double May’s pace
- Traders now pricing in a 97.3% chance of another 25 basis point rate hike
- Bitcoin’s price sits at the low end of its recent range
- Last week’s rally was negated by the favorable court ruling for Ripple’s XRP
The retail sales report from the U.S. Census Bureau for June showed some weakness in the headline number, but the “control group” that filters out certain components to gauge consumer spending rose 0.6% in June, surpassing estimates and indicating strong consumer activity. Traders are now almost certain of another Federal Reserve rate hike next week, with a 97.3% chance priced in. Bitcoin’s price, which had rallied last week, now sits at the lower end of its recent range due to the positive court ruling for Ripple’s XRP.
Hot Take:
The U.S. economic data and the near certainty of another rate hike have impacted bitcoin’s price, pushing it towards the lower end of its recent range. The retail sales report indicates overall weakness, but the control group suggests strong consumer spending. The positive court ruling for Ripple’s XRP had initially boosted bitcoin’s price, but the rally has since been nullified. Traders will be closely watching the outcome of the Federal Reserve’s meeting next week to assess its impact on the cryptocurrency market.
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