Bitcoin (BTC) began the week on a downward trend, trading around $61,000 with an intraday low of $60,675. Despite a previous surge following the U.S. approval of exchange-traded funds (ETFs), Bitcoin has not regained momentum.
The decline is largely due to hawkish comments from the Federal Reserve and speculation that the Fed may postpone its easing plans, driving investors toward safer assets amid economic uncertainty. This has strengthened the U.S. dollar, contributing to Bitcoin’s losses.
Looking ahead, Bitcoin traders will focus on upcoming speeches by Fed officials Jefferson and Mester. Subsequent attention will turn to major U.S. economic reports such as the Consumer Price Index (CPI), Producer Price Index (PPI), and Retail Sales. Stronger-than-expected data could dampen hopes for a Fed rate cut and increase selling pressure on Bitcoin.
Hawkish Fed and Consumer Worries Weigh on USD and BTC
The U.S. Federal Reserve’s hawkish tone, alongside weaker consumer sentiment, has strengthened the dollar but applied downward pressure to Bitcoin. Fed officials, including San Francisco’s Mary Daly, have advocated for sustained restrictive policies to manage inflation, while others, like Atlanta’s Raphael Bostic, see potential rate cuts despite prevailing uncertainties.
Conversely, Dallas Fed President Lorie Logan and Minneapolis Fed President Neel Kashkari underscore the risks of inflation, supporting a cautious approach towards rate adjustments.
Recent data compounds the economic outlook; the Michigan Consumer Sentiment Index recorded a significant drop to 67.4 this May, signalling growing consumer concerns about inflation, which may influence future monetary policy decisions. This mixed economic feedback fosters uncertainty, affecting both traditional and digital asset markets.
Fed’s Mixed Signals: Diverse opinions among Fed officials create market volatility.
Consumer Sentiment Dip: Indicates rising inflation worries, impacting spending and investment decisions.
El Salvador’s BTC Transparency Boosts Confidence but Faces Adoption Hurdles
El Salvador has taken a bold step in enhancing transparency around its Bitcoin investments by publicizing transaction data through a customized mempool.
The country’s strategic approach includes holding 5,748.76 BTC, valued at over $352.8 million, and adhering to a Dollar-Cost Averaging (DCA) buying method. Despite these efforts and President Nayib Bukele’s regular Bitcoin acquisitions, only 12% of Salvadorans used Bitcoin for transactions in 2023.
El Salvador now has its own @mempool space where anyone can check out our #bitcoin treasury holdings.
See details in the next post. pic.twitter.com/PEpVemHoFO
— The Bitcoin Office (@bitcoinofficesv) May 12, 2024
This low uptake highlights challenges in widespread adoption among the populace.
The initiative to make Bitcoin investment data accessible could strengthen global investor trust in Bitcoin. Yet, the limited use of Bitcoin within El Salvador suggests that substantial effects on BTC prices might require broader acceptance and integration into daily financial activities.
Investment Transparency: El Salvador’s open approach could increase global trust in Bitcoin.
Usage Gap: Minimal local Bitcoin transactions underline adoption challenges.
Market Influence: Widespread adoption is necessary for a significant impact on BTC pricing.
Bitcoin Price Prediction
Today’s technical analysis of Bitcoin (BTC/USD) reveals a slight downtrend. The price is currently at $61,098, reflecting a decrease of 0.61%. Bitcoin price prediction struggles below a pivotal $61,764, indicating a potential continuation of the bearish trend.
Resistance levels are significant at $63,824, $65,506, and $67,222, which BTC must overcome to reverse the downward momentum.
Support, meanwhile, is firm at $60,185, with further potential floors at $58,812 and $56,640. The Relative Strength Index (RSI) is at 44, suggesting a neutral to bearish sentiment.
Bitcoin Price Prediction
The 50-day Exponential Moving Average (EMA) sits at $61,792, closely aligning with the pivot point, thereby underscoring its importance as a threshold for bearish or bullish shifts.
Unlock Early Benefits: 99Bitcoins Token Presale Now Live!
The 99Bitcoins presale is currently underway, offering a unique opportunity in cryptocurrency education. By participating in this ‘learn-to-earn’ platform, users can enhance their understanding of digital currencies while acquiring $99BTC tokens, which are both a reward mechanism and a gateway to premium content and community benefits.
With the token price set at $0.00104 each, early investors are provided a cost-effective entry point to start growing their expertise and investment simultaneously.
As of now, the presale has successfully raised $1,169,037, moving closer to the target of $1,892,544. With only four days and just over an hour remaining before the next stage price increase, this limited-time offer presents a critical moment for investors to buy into $99BTC and gain access to immediate staking options.
Secure Your 99Bitcoins Today
The post Bitcoin Price Prediction: Trades at $61,000 Amid Hawkish Fed Outlook; What’s Next? appeared first on Cryptonews.
