Fed Rate Cuts Decision on Radar, Bitcoin (BTC) Price Eyes Next Local Top At $89,200
This week seems to be very crucial for Bitcoin (BTC) and the broader cryptocurrency market as the U.S. Federal Reserve will release interest rate decisions following the release of the May CPI and PPI data. After failing to sustain above $71,000 last week, the Bitcoin (BTC) price is now flirting around $69,500 levels as of press time.
What to Expect on Fed Rate Cuts?
Last week, the Bank of Canada and the European Union decided to switch gears towards monetary easing and cut down interest rates. However, several market analysts believe that the U.S. Federal Reserve is unlikely to act in a similar direction.
When the Federal Reserve’s policy-setting committee wraps up its two-day meeting on Wednesday, it is widely anticipated that they will maintain the influential fed funds rate within the current range of 5.25-5.50%. This level, a 23-year high, has been in place since last July to continue exerting downward pressure on inflation.
According to the CME Group’s FedWatch Tool, traders are primarily expecting the earliest possible rate cut to occur in September. Traders reduced their bets on a September rate cut to 50.8% on Friday, down from 68.7% the previous day. This shift followed a Bureau of Labor Statistics report indicating that the job market was stronger than anticipated in May, suggesting that wages and job growth could be exerting upward pressure on inflation.
Bitcoin (BTC) Price Action Ahead
Renowned crypto analyst Ali Martinez has forecasted a significant potential increase in Bitcoin’s value, identifying a possible local peak at $89,200. Martinez highlighted the Bitcoin Taker Buy Sell Ratio on HTX Global, which has surged to an impressive 730.
This substantial buy pressure reflects a dominant bullish sentiment, indicating that Bitcoin’s price could experience a strong upward movement in the near future.
As per Martinez, there’s a significant uptick in Bitcoin network activity, noting that the number of daily active Bitcoin addresses has broken a downtrend that began on March 5. In the past 24 hours, 765,480 Bitcoin addresses were active.
Martinez emphasized that this surge in network activity is a positive indicator, suggesting that the current Bitcoin bull run is likely to continue.
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