This month, the price of Bitcoin has experienced roller-coaster-like fluctuations. After soaring to nearly $70,000, it fell back to $63,000, contrasting sharply with the continuous rise of the Nasdaq. According to CoinDesk, the trend of Bitcoin (BTC) has formed a double top pattern, suggesting a bearish inclination before the release of key data that affects the Federal Reserve’s interest rate path.
Markus Thielen, founder of 10x Research, pointed out that although the US election and CPI will be positive factors later this year, the market may still see steeper price corrections.
However, Greg Magadini, Director of Derivatives at Amberdata, pointed out that the Federal Reserve’s preferred inflation indicator, the Personal Consumption Expenditures (PCE) Price Index for May, will be released this week. Economists expect no change in the PCE to be announced this week, and the month-on-month increase in core PCE is expected to be revised down to 0.1%, lower than the previous value of 0.2%.
The month-on-month increase in core PCE has remained at its lowest level in three years. If inflation growth slows further, the Federal Reserve will have greater reason to cut interest rates again in September, thereby increasing market liquidity and boosting investor demand for risk assets such as stocks and Bitcoin, providing price support for these assets.
(Reprinted with permission from GT Radar)
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