Bitcoin and cryptocurrency markets are gearing up for a significant movement as the price of BTC consolidates below the $31,000 level. Recent macroeconomic data revealing disinflationary trends has sparked optimism among risk asset bulls.
United States Producer Price Index (PPI) numbers, released below expectations, have contributed to diminishing inflation forecasts. Despite this, market sentiment remains convinced that the Federal Reserve will implement another interest rate hike, as indicated by near 95% bets on a 0.25% increase according to CME Group’s FedWatch Tool.
Caleb Franzen, a senior market analyst at Cubic Analytics, argues that declining inflation has directly influenced the rebound of Bitcoin throughout 2023. He believes that the noticeable rise in equities and Bitcoin, with the latter up 86% year-to-date, can be attributed to disinflationary factors.
Meanwhile, positive developments in the European market include the imminent launch of Europe’s first Bitcoin spot exchange-traded fund (ETF) later this year. Michaël van de Poppe, founder and CEO of trading firm Eight, anticipates a breakout for Bitcoin, stating that if the support at $30,200 holds, a swift move towards $38,000 is likely.
Other traders, such as Skew and Jelle, anticipate a return to trend soon, with indications of a major move and a triangle formation near the key resistance level of $31,000.
As the crypto market awaits potential breakthrough moments, independent journalism in the cryptocurrency space continues to document these events. This article emphasizes that it does not offer investment advice and encourages readers to conduct their own research before making any financial decisions.