Bitcoin is in a crucial week, with important factors influencing its performance. Analyst Ted highlighted key indicators and events to watch. Last week’s US CPI and PPI data were positive for risk assets, showing a disinflationary trend. However, the Fed’s communication suggests caution about rate cuts.
The focus this week is on the FOMC meeting and the revised dot plot. The March dot plot hinted at 2-3 rate cuts in 2024, but June’s revision suggests only 1-2 cuts. This alignment between the Fed’s projections and market expectations gives flexibility in future rate communications. Maintaining the $66,000 support level is vital for Bitcoin.
Ted stressed the importance of this threshold, warning of potential market pressure if broken. Bitcoin is expected to trade between $65,100 and $74,100, while Ethereum may fluctuate between $3,388 and $4,025 this week. US tech stocks, like NASDAQ, are at all-time highs, anticipating easier central bank policies.
Ethereum’s performance relative to Bitcoin is worth watching, especially with the launch of spot Ethereum ETFs on Wall Street. Rate decisions from the SNB and RBA will also be monitored for future policy hints. ETF flows slowed last week but are crucial for Bitcoin’s liquidity and price support.
Overall, this week is critical for Bitcoin and the crypto market, influenced by disinflation trends, Fed communications, support levels, and external economic factors. Ted suggests buying opportunities for cryptocurrencies and stocks amidst accommodative monetary policy shifts. BTC traded at $65,965 at press time.