Bitcoin holds steady at $26K amidst anticipation for Federal Reserve’s Powell comments, showing resilience in the face of inflation data.
In a surprising turn of events, the price of Bitcoin (BTC) remained steady at $26,000 on June 14, despite the release of new macroeconomic data in the United States. This lack of response from the cryptocurrency markets comes after the Producer Price Index (PPI) data showed a continued decline in U.S. inflation.
Bitcoin traders seemed unaffected by the PPI data, as the cryptocurrency continued to trade within a familiar range, showing minimal volatility. As a result, market analysts turned their attention to the upcoming Federal Reserve decision on interest rates and the subsequent comments from Fed Chair Jerome Powell, hoping for fresh insights and inspiration.
Financial commentator Tedtalksmacro humorously referred to the day as a “happy hawkish pause day,” alluding to projections from major U.S. banks that suggested the Fed would halt its rate hike cycle that began in late 2021. These predictions were further supported by the latest data from CME Group’s FedWatch Tool, which indicated a 92% likelihood of a rate hike pause at the time of writing.
Bitcoin Analysts Debate U.S. Dollar Impact on BTC/USD
In addition to the interest rate decision, Bitcoin analysts also debated the strength of the U.S. dollar and its potential impact on BTC/USD. Crypto Ed, a prominent BTC analyst, observed the U.S. dollar index (DXY) and suggested that if it continued its upward trajectory, it could exert pressure on BTC price.
Despite the prevailing uncertainty and negative catalysts, such as the legal actions against major exchanges in the United States, popular trader and analyst Rekt Capital offered a more optimistic view. Rekt Capital pointed out that BTC/USD had only fallen by less than 20% from its local highs of $31,000 in April, indicating a relatively resilient price performance.
Another trader, Moustache, echoed this positive sentiment, emphasizing that recent events had resulted in minimal changes in Bitcoin’s price action when viewed from longer timeframes.
Overall, BTC remained relatively stable at $26,000, seemingly unfazed by the latest inflation data. Traders and investors eagerly awaited the Federal Reserve’s interest rate decision and the subsequent comments from Chair Jerome Powell, hoping for new insights that could potentially influence the market. In the meantime, market analysts continued to monitor the strength of the U.S. dollar and its potential impact on BTC price movement.