Since March 20th, cryptocurrency investors have been living in a nightmare. However, there is a glimmer of hope as recent inflation data suggests a positive turn of events. Although progress towards the 2% target has been delayed, the poorly reported figures from the first three months now indicate a step in the right direction. Additionally, there is an increased likelihood of interest rate cuts starting in September.
Cryptocurrencies Are on the Rise
The monthly Consumer Price Index (CPI) for April was 0.3%, surpassing the expected 0.1%. The annual headline and core inflation met expectations, with a noticeable decline in the annual rate. In fact, core inflation has reached its lowest level since 2021. While not everyone is satisfied with these developments, The Kobeissi Letter has commented on the latest market trends. To stay updated with the latest financial and business news, visit COINTURK FINANCE.
Unimpressive Data from CME Group’s FedWatch Tool
Unfortunately, the data from CME Group’s FedWatch tool is not very promising. Investors who initially anticipated a 150bp cut at the beginning of the year, with the first cut expected in March, have significantly pushed back their expectations. The probability of rate cuts in June is only 3.1%, and it increases slightly to 28.3% in July.
Will Bitcoin and other Cryptocurrencies Rise?
As we mentioned previously, it is crucial for the price to surpass $65,000 for further technical increases. Following today’s inflation data, the price is currently hovering around the $66,000 mark, recently reaching $65,986. The outlook in the exchange order books has also changed after the release of this data. According to CoinGlass, buyer liquidity is concentrated above $65,000.
Cryptocurrency analyst Skew predicts that if the $65,000 level is maintained, the price could continue to rise towards $70,000 and even $73,777. However, there are still obstacles that need to be overcome. The Securities and Exchange Commission (SEC) will announce its final decision on spot ETH ETF applications on May 23rd and 24th, or possibly earlier.
If the SEC announces a decision against the applications, we can expect a normal decline in ETH and altcoins. However, if all applications, including BlackRock’s, are rejected, it could result in larger losses. Considering the SEC’s previous actions during the BTC ETF process, it is highly unlikely that approval will be granted after the recent lawsuits.
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Disclaimer:
The information provided in this article should not be considered as investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry significant risks. It is recommended that investors conduct their own research before making any investment decisions.
