Bitcoin price recently experienced a slight spike reaching towards $26,500 on the back of the latest United States Consumer Price Index (CPI), which came in below expectations. However, the crypto market remained cautious with seemingly minimal impact as the market fell back in line at $26,000. The odds of the Federal Reserve pausing its rate hike cycle after the Federal Open Market Committee (FOMC) meeting on June 14 rose to over 90% following the CPI event, according to the CME Group’s FedWatch Tool.
While this news offers some relief to risk asset holders, its true impact on the crypto markets is yet to be determined. With more comments from the Federal Reserve anticipated in the coming days, as well as further macro prints, the extent of the influence CPI prints and potential rate hikes will have on Bitcoin and cryptocurrencies remains in question.
Nonetheless, traders and analysts have been expressing differing opinions on what could come next for Bitcoin price. The closure of the weekend CME futures gap at around $26,500 has garnered a mixed response, with some eyeing $25,000 as a potential downside entry point, while others remain optimistic about a rebound. Michaël van de Poppe, founder and CEO of trading firm Eight, shared his thoughts on the potential scenarios in a tweet, suggesting a possible drop in BTC price ahead of the FOMC meeting, followed by a bounce back up if the Fed chooses to pause or if unemployment claims come in higher than expected.
Meanwhile, liquidity levels in the market have been observed to be relatively low, with clearly-defined support and resistance from the Binance order book shared by monitoring resource Material Indicators. This highlights the uncertainty and potential volatility in the market as traders and investors await crucial economic data and announcements.
As market participants continue to weigh the pros and cons of the current macroeconomic climate, the near-term future of Bitcoin and cryptocurrency price action remains a topic of discussion, interest, and even skepticism among traders and enthusiasts alike. The eventual outcomes of FOMC meetings and further economic data will play a significant role in shaping market sentiments and determining where the crypto markets headed next.
Source: Cointelegraph
