On Wednesday, Bitcoin (BTC/USD) experienced a meaningful increase of 1.60%, trading at an energetic $29,700. This trend is seemingly backed by crucial macroeconomic factors including the anticipated CPI report and the forthcoming decision on interest rates by the Federal Reserve. Additionally, rising hopes for a Bitcoin ETF approval are also contributing to the strengthening of the cryptocurrency’s price.
The current value of BTC is integrally tied to broader economic movements. Historically, it appears that BTC prices augment during periods of monetary expansion, as observed in 2021. The Consumer Price Index (CPI) report for July is projected to surpass the Fed’s 2% target, hitting around 3.3%, which intensifies worries over inflation.
There’s a sense of impending action as we draw nearer to the Federal Open Market Committee (FOMC) interest rate verdict on September 20th. Bitcoin investors, including high-stake holders, are leveraging derivatives to adopt long positions in an effort to buffer BTC prices during this potential period of escalated inflation. Nonetheless, the landscape isn’t devoid of doubts, and investors could potentially steer towards conventional safe havens if the economic situation deteriorates.
The recent surge in Bitcoin (BTC) prices is propelled by optimism surrounding the approval of a spot BTC exchange-traded fund (ETF). Figures like Ark Invest CEO Cathie Wood and Galaxy Digital CEO Mike Novogratz manifest strong positive sentiments about this possible approval. They believe that the approval of multiple ETFs by the Securities and Exchange Commission (SEC) is imminent, providing individual and institutional traders with easier exposure to Bitcoin without the need for direct cryptocurrency trading.
Despite Bitcoin’s current trade at around $29,697 and slight bullish inclination, the cryptocurrency faces hindrance in breaching the $30,200 barrier. This is evidenced by technical indicators like the RSI and MACD, suggesting that the present bullish momentum might be losing steam. However, overcoming the $30,200 resistance could push BTC towards the $30,600 to $31,000 zone. The levels at $29,800 and $30,200 are critical, with possible drops beneath them signalling a bearish path for BTC.
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Source: Cryptonews
