Markets
Bitcoin, Ethereum, Dogecoin Headed for ‘Full Sideways’ by CPI, FOMC Data Next Wednesday, Trader Says
June 7, 2024 10:13 am | 2 minutes reading
With Bitcoin (CRYPTO: Bitcoin) failing to reach a new all-time high in the face of stronger-than-expected labor market data, a trader expects sideways price action See you next week.
What happened: Pseudonymous merchant Kevin predicts minimal price movement in the coming days ahead of significant economic data on Wednesday, June 12.
Kevin stated, “Given that next Wednesday is such an important day, I’m not waiting any price action until then. Expect a complete lateralization and perhaps even a small dip in the break.” He advised his followers to take a break for the next five days.
Emphasizing the importance of next Wednesday, he mentions considered the most significant day for markets in a long time. He noted the convergence of key economic indicators, including the Consumer Price Index (CPI), the Core CPI and the Federal Open Market Committee (FOMC) meeting.
In another tweet, Kevin conducted a survey for the crypto community, with over 70% expecting higher prices in the near term.
Read too: Can Bitcoin surpass US$80,000? Why This Trader Thinks ‘The Time Has Come’
Why this matters: Kevin’s insights are crucial for investors and traders, especially those involved in the cryptocurrency market. The convergence of CPI, Core CPI and FOMC announcements on a single day is rare and can lead to significant market volatility.
In the past, Bitcoin (CRYPTO: Bitcoin), Ethereum (CRYPTO: ETH) Dogecoin (CRYPTO: DOGE) reacted after the release of data from the FOMC Meeting, since interest rates have a direct relationship with investments in risky assets. Crypto Analyst Benjamin Cowen observed that despite the Fed keeping interest rates at 5.5% and announcing a gradual reduction in quantitative tightening starting in June, this will only prolong the process of Bitcoin’s dominance reaching its peak.
Macro trader Ted recently highlighted that a stable employment rate and optimistic job additions could lead to an upward trend in risky assets. Traditional financial investors could be attracted to allocating gains to Spot Bitcoin ETFs, which have slowed recently.
What is the next: The influence of Bitcoin as an institutional asset class expected to be thoroughly explored at Benzinga’s next event Future of digital assets event on November 19th.
Read next: Bitcoin Spot ETFs Can’t Get Enough of Historic 18-Day Buying Spree: Is This a New Gold Rush?
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