Bitcoin
Bitcoin Will Face Massive Price Drop Ahead of CPI Data and FOMC Decision
The world of cryptocurrencies woke up today to some turbulence, driven by speculation surrounding possible interest rate changes. This speculation was fueled by a phone call from Senators Elizabeth Warren, Jacky Rosen and John Hickenlooper, urging the Federal Reserve Consider reducing interest rates before your next decision.
Bitcoin has taken a hit, falling 4% in the last 24 hours to $66,700while Ethereum also suffered a decline, dropping to $3,520.
Dive deeper to find out what analysts are saying and where the price could head next.
Important week for crypto
According to well-known crypto analyst Michaël van de Poppe, this week holds significant importance, with all eyes on the release of Consumer Price Index (CPI) data and the Federal Committee’s upcoming interest rate decisions. Open Market (FOMC) scheduled for June 12th.
There is growing anxiety surrounding the Federal Reserve’s stance on interest rates, which has led to increased selling pressure in the cryptocurrency market. Previous expectations of two interest rate cuts by the end of 2024 were cast into doubt, with even an adjustment in September appearing unlikely.
Uncertainties in the United States and discouraging economic data have driven investors away from riskier assets like Bitcoin, resulting in downward pressure on its value.
A look back at history
Looking back, Bitcoin and other cryptocurrencies tend to undergo corrections before significant events, typically recovering afterwards. This trend suggests a cautious approach on the part of traders and investors, who prefer to wait for relevant economic data before taking significant action.
Next BTC Buying Opportunity
Bitcoin’s recent price struggles come after failing to surpass the $71,000 mark. Analyst Michaël van de Poppe has identified critical price levels and areas of interest for interested parties, indicating that Bitcoin will likely test the support range between $64,000 and $65,000.
According to Van de Poppe, this range of support is crucial as it could provide a solid foundation for Bitcoin Price stabilize before attempting another climb. However, if the price falls below this support, attention will shift to a significant demand zone between $54,000 and $56,000.
With the FOMC meeting and the release of new CPI data on the horizon, market participants are preparing for potential changes in the market. You should too!