The Bitcoin price is tracking lower, falling from $69,000. This follows yesterday’s FOMC market data. Post-FOMC, BTC Bulls remain optimistic.
Bitcoin has been choppy in the last 48 hours. After prices plunged to around $67,000 on June 11, prices recovered swiftly on June 12, only to contract in the early Asian session on June 13.
Prices moving inside a range explain why there are mixed signals. Traders are still cautious about committing and are waiting for a clear trend definition.
$BTC Update
Post-FOMC#Bitcoin surged after the CPI came in lower than expected, confirming the stochastic's golden cross. However, Powell's hawkish stance on inflation swiftly drove the price back down. Despite this a reversal still occurred, showcasing the market's resilience.… pic.twitter.com/O3uXibNNqn
— BATMAN ⚡ (@CryptosBatman) June 13, 2024
However, what’s clear is that buyers have a chance. The recovery on June 12 was a message to bears; bulls are waiting to pounce should Bitcoin break above the strong liquidation area of $70,000 and $72,000.
CPI is Falling, Bitcoin Spikes Towards $69,000
The primary driver behind yesterday’s short-lived leg-up appears to be the moderately positive inflation data from the United States.
The Consumer Price Index (CPI) for May showed a 3.3% increase year-over-year, lower than market expectations.
(CPI)
This data and a decrease in energy prices eased concerns about runaway inflation.
Analysts said falling inflation was precisely what the Federal Reserve needed to see before slashing rates, probably in September.
Following this reading, BTC prices rose sharply, emboldening risk-on sentiment and fanning demand from aggressive traders.
Federal Reserve Holds Rate Steady – Market Tensions Ease
Despite hope, BTC contracted later in the day after the Federal Reserve chose to hold interest rates steady.
This was largely expected.
Comments from the chair, Jerome Powell, however, pushed prices lower.
In a presser, the Fed chair acknowledged positive progress on inflation.
Even so, he maintained a cautious approach, emphasizing the need for further data before considering cuts.
Of note, the Fed said they will reduce the number of expected rate cuts from two to one this year; sparking a sell-off across the market.
(BTCUSDT)
For now, it remains to be seen how bulls will react and whether BTC will rally above $69,000 and even $72,000.
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Looking At Options Market, Miner Liquidation, And Spot ETFs
There are hints of strength in the Bitcoin derivatives market. Trading data shows that futures premium is resilient, even with prices dipping.
(DATA)
Nonetheless, analysts must see a balance between call and put options for a clearer picture. If there is a spike in call options, premiums will continue rising, signaling a shift toward bulls.
While the short-term picture appears bullish, some factors could impede this positive progress.
Miner outflows, particularly from large players like Marathon Digital, raise concerns and could heap more pressure on prices.
Post-halving, miners, amid reduced revenue from block rewards, appear to be selling their holdings to keep running.
Further dampening the mood is the outflow from spot Bitcoin ETFs.
Yesterday, Lookonchain data showed that all nine ETFs in the United States decreased by 2,199 BTC.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
