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Bitcoin Above $69,000 as Inflation Shows Signs of Easing Ahead of Fed Meeting

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U.S. prices rose modestly in June, suggesting cooling inflation that might allow the Federal Reserve to cut interest rates in September and provide a pathway for higher prices in risk assets, including crypto.

The Commerce Department reported on Friday that consumer spending slowed slightly last month. Easing price pressures and a cooling labor market may bolster Fed officials’ confidence that inflation is trending toward the central bank’s 2% target.

Data showed that the price index of personal consumption expenditures, the Fed’s preferred gauge for inflation, rose 0.1% last month after being unchanged in May. It also rose 2.5% compared to goods and services measured a year ago, data showed.

A cut to interest rates could help lift crypto asset prices as borrowing becomes cheaper for investors, with some analysts forecasting a Bitcoin price as high as $100,000 this year. The asset is trading for $69,200, according to CoinGecko data.

The Fed’s next policy meeting is set for July 30-31. The CME’s FedWatch tool, which considers Fed funds data by derivatives traders, shows a 95.5% chance of no rate cuts this month.

The probability for a 25 basis point cut in September, however, stands above 85%, with a further 14% tipped for an even larger cut.

Earlier this month, former President Donald Trump warned Fed Chairman Jerome Powell against politicizing rates ahead of the U.S. election, which could boost voter confidence over economic stewardship and help the Democrats retain the White House in November.

The former president and Republican nominee previously said the central bank would “maybe” cut interest rates ahead of the election before adding: “It’s something that they know they shouldn’t be doing.” Trump also said he wouldn’t kick Powell out of his job before his term ended, provided he was “doing the right thing.”

In any case, the timing of the U.S. election is placing additional pressure on the central bank to stick to its congressionally mandated objectives of remaining impartial.

Bitcoin, meanwhile, stands to benefit from a change of the guard in Washington, D.C., according to some industry experts.

“Bitcoin will spend the next four months highly correlated to the probability that Trump is elected,” Rich Rosenblum, co-founder of trading firm GSR, tweeted on Saturday.

Trump, speaking to a packed crowd of 20,000 people at the Bitcoin 2024 conference in Nashville on Saturday, said he would build a “strategic Bitcoin stockpile,” vowing to keep 100% of all the Bitcoin the U.S. government currently holds or acquires on home soil.

Despite Trump’s speech having little impact on Bitcoin’s price, the former president’s crypto policy promises have made it “impossible” for Vice President Kamala Harris to counter, Rosenblum tweeted.

That’s largely dependent on Harris’ policy being devoid of any language focusing on an overhaul to the Securities and Exchange Commission and government-held Bitcoin, the co-founder said.

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cryptocurrency

Top cryptocurrencies to watch this week

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The global crypto market cap ended last week with a 7% drop, losing $160 billion as it closed at $2.15 trillion.

While Bitcoin (BTC) influenced the broader market, several altcoins charted their own paths, benefiting from unique developments within their ecosystems.

Here are some of these cryptocurrencies to keep an eye on this week, following their diverse price movements last week:

HMSTR collapses 18% 

Hamster Kombat (HMSTR) saw a bearish week, dropping 18% to $0.004714. Its worst day came on Oct. 1 when it fell 13.94% amid a broader market decline on the back of geopolitical tensions.

HMSTR, SUI, FTT: Top cryptocurrencies to watch this week - 1
HMSTR 4H chart – Oct. 6 | Source: crypto.news

Last week’s bearishness built on a downtrend HMSTR has faced since its airdrop on Sept. 26. However, the four-hour chart shows some signs of recovery, with the RSI sloping upward, now at 42.82.

For the DMI, the +DI is steady at 17.46, signaling slight buyer momentum. However, the -DI at 23.07 slopes downward, indicating weakening selling pressure. The ADX is at 22.68 and trending downward, as the current trend loses strength.

These figures suggest a possible recovery if buying momentum continues, with bulls possibly targeting $0.0051. However, the downtrend may persist if buyers do not pick up pace this week.

SUI demonstrates resilience 

Sui (SUI) showed resilience despite broader market volatility, dropping only 0.3%. On Oct. 1, amid market turmoil, SUI dipped just 0.97%.

However, it saw a sharper 10.38% decline on Oct. 3, its largest intraday crash in three months.

HMSTR, SUI, FTT: Top cryptocurrencies to watch this week - 2
SUI 1D chart – Oct. 6 | Source: crypto.news

SUI appears to be forming a bull pennant following its uptrend in September. Currently, the Bollinger Bands indicate the upper band at $1.97, which acts as resistance, and the 20-day MA at $1.62 provides immediate support. 

With SUI trading below the upper band, the price could stabilize above the $1.62 support.

Investors should monitor for a bounce between $1.62 and $1.97, with a breakout above the resistance likely signaling bullish momentum for the week.

FTT bucks the trend

FTX Token (FTT) defied market trends last week, gaining 22% while most assets declined.

On Oct. 1, FTT rose by 13.89%, followed by a 21.53% surge on Oct. 4 and another 9.86% the next day. 

HMSTR, SUI, FTT: Top cryptocurrencies to watch this week - 3
FTT 1D chart – Oct. 6 | Source: crypto.news

Amid this uptrend, the Williams Percent Range stands at -32.59, signaling that FTT is near overbought territory but still has room for further gains. 

As it witnesses a 9% retracement this new week, bulls need to defend the Pivot support at $2.01 to prevent a slip into bearish territories. Below this, the next support rests at $1.33, marking lows last seen in two weeks.

Should FTT recover from the latest correction, market participants should watch for a break above the resistance level at $2.68, which continues the bullish momentum.



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Bitcoin

Whales didn’t sell Bitcoin at $62k, on-chain data shows

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Bitcoin faces yet another correction after surpassing the $62,000 mark on Oct. 2. However, data shows that whales haven’t taken part in the latest selloff.

Bitcoin (BTC) consolidated around the $60,000 zone between Oct. 1 and 4 as the geopolitical tension between Iran and Israel heated up.

Right after the U.S. jobs report, the flagship cryptocurrency reached a local high of $62,370 on Oct. 5 as the broader crypto market witnessed bullish momentum.

Whales didn’t sell Bitcoin at $62k, on-chain data shows - 1
BTC price – Oct. 6 | Source: crypto.news

Bitcoin declined by 0.2% in the past 24 hours and is trading at $61,950 at the time of writing. Its daily trading volume plunged by 53% and is currently hovering at $12.2 billion.

According to data provided by IntoTheBlock, large Bitcoin holders recorded a net inflow of 205 BTC on Oct. 5 as the outflows remained neutral. The on-chain indicator shows that whales didn’t sell Bitcoin as its price surpassed the $62,000 mark.

Whales didn’t sell Bitcoin at $62k, on-chain data shows - 2
BTC whale net flows – Oct. 6 | Source: IntoTheBlock

Meanwhile, Bitcoin’s whale transaction volume decreased by 48% on Oct. 5 — falling from $48 billion to $25 billion worth of BTC. Lower trading and transaction volumes usually hint at price consolidations and lower volatility.

Data from ITB shows that Bitcoin registered a net outflow of $153 million from centralized exchanges over the past week. Increased exchange outflows suggest accumulation as the bullish expectations for October rise.

It’s important to note that macroeconomic events and geopolitical tension can suddenly change the direction of financial markets, including crypto.



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artificial intelligence

AI Tokens Lead Crypto Rebound Amid Strong U.S. Economy

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Bitcoin may have bottomed at $60,000 earlier this week, and the Fed easing into a strong economy points to more upside, Will Clement said.



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