Fintech
Bitcoin will face a massive price drop ahead of the CPI data and FOMC decision
The cryptocurrency world woke up to some turbulence today, driven by speculation over potential changes in interest rates. This speculation was fueled by a call from Senators Elizabeth Warren, Jacky Rosen, and John Hickenlooper, urging the Federal Reserve consider cutting interest rates before your upcoming decision.
Bitcoin has taken a hit, losing 4% in the last 24 hours $66,700while Ethereum also recorded a decline, falling to $3,520.
Dive deeper to find out what analysts are saying and where the price could go next.
Key week ahead for cryptocurrencies
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 upcoming interest rate decisions by the Federal Open Market Committee (FOMC) scheduled for June 12.
There is growing anxiety regarding 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 have been cast into doubt, and an adjustment in September also appears unlikely.
Uncertainties in the United States and disappointing economic data have pushed investors away from riskier assets like Bitcoin, resulting in a downward pressure on its value.
A look back at history
Looking back, Bitcoin and other cryptocurrencies have tended to undergo corrections before significant events, typically recovering afterwards. This trend suggests a cautious approach among traders and investors, who prefer to wait for relevant economic data before making significant moves.
Next BTC buying opportunity
Bitcoin’s recent price struggles come after it failed to clear the $71,000 mark. Analyst Michaël van de Poppe has identified critical price levels and areas of interest for stakeholders, indicating that Bitcoin is likely to test the support range between $64,000 and $65,000.
According to Van de Poppe, this support range is crucial as it could provide a solid foundation for The price of Bitcoin stabilize yourself before attempting another climb. However, if the price breaks below this support, the focus will shift to a significant demand area between $54,000 and $56,000.
With the FOMC meeting and the release of new consumer price index data on the horizon, market participants are preparing for potential market changes. You should too!