Bitcoin price prediction: US economy slows, but hopes for Fed rate cut fade How will BTC react?

Bitcoin (BTC) has failed to maintain its uptrend despite many supporting factors such as a weaker US dollar and an expected change in the Federal Reserve’s monetary policy this year. BTC lost some of its gains and fell to around $62,400 at the time of writing, having hit a daily low of $62,080.

*The news article contains an advertisement from our advertiser

Bitcoin started the week bullish after falling to $56,000 last week, rebounding above $64,000 on Monday. One reason was the US jobs report for April, which was more positive than traders had expected. The report indicated a slowing economy, which could lead to lower inflation and interest rates.

However, the price boost was only short-lived as BTC fell on Tuesday, possibly due to cautious investor sentiment ahead of a speech by Neel Kashkari, president of the Minneapolis Federal Reserve. His comments had a hawkish tone, signaling a tighter approach to interest rates, which slightly strengthened the US dollar and further negatively impacted BTC.

Marathon Digital Shares Up 18%: Beacon in BTC Mining Amid Market Uncertainty

Marathon Digital Holdings, a major player in the Bitcoin mining sector, recently saw its share price rise 18% to $20.67, increasing its market capitalization to nearly $5.5 billion. This significant increase follows the announcement that Marathon will be included in the S&P SmallCap 600 index, highlighting its growing importance in the cryptocurrency mining industry.

Although Marathon’s stock has taken a hit, Bitcoin itself is in a bearish trend. It is trading around $62,400, reflecting negative sentiment in the broader market. This contrast suggests that individual companies can thrive, despite developments in the cryptocurrency market.

SEC Delays Ruling on Spot Ethereum ETFs While Investments in Bitcoin ETFs Grow

The US Securities and Exchange Commission (SEC) has once again postponed a decision on the approval of publicly traded funds (ETFs) for ETH. It postponed the announcement of the results of Galaxy Invesco’s application review for another 60 days until July 5. The decision continues a trend seen in previous delays that have hit financial majors such as BlackRock and Fidelity, raising doubts about imminent approval due to ongoing regulatory uncertainties. Analysts are increasingly skeptical about the likelihood of spot Ethereum ETFs being approved.

While Ethereum faces regulatory hurdles, investments in Bitcoin ETFs are on the rise. Companies like Hightower are allocating significant capital into them, highlighting stronger market confidence in Bitcoin. This trend suggests that the market may favor BTC over Ethereum in the short term. This could positively affect the price of the largest cryptocurrency.

Expected Fed rate cut could boost Bitcoin demand as dollar weakens

The recent report on the US labor market raised expectations that the Federal Reserve may cut interest rates later this year, which would weaken the US dollar and increase the attractiveness of Bitcoin. However, Fed officials cannot agree. Richmond Fed President Thomas Barkin supports keeping rates at current levels to control inflation, while New York Fed President John Williams has suggested a possible rate cut as early as September or November.

Markets are now forecasting a total cut of 46 basis points in 2024, suggesting a move to a more accommodative monetary policy. This expected easing would subsequently strengthen the attractiveness of Bitcoin as a hedge against currency devaluation. This would increase demand and potentially its price.

The growing interest in bitcoin, fueled by the prospect of lower interest rates, highlights its role as an alternative investment in times of monetary easing, which could lead to a sustained increase in its market value.

Bitcoin price prediction

Bitcoin price prediction is quite bullish despite the negative development. The cryptocurrency is currently trading at $62,535, down 2% in the last 24 hours. The asset is now trading close to its pivot point at $63,002, indicating a potentially bullish trajectory. The immediate resistance level is identified at $65,512, followed by $67,331 and $69,441, which BTC would need to overcome to sustain the bullish momentum.

On the contrary, BTC will hit the $60,928 support as the price declines. Additional support levels that could provide stabilization in the event of a bearish trend are located at $58,927 and $56,625. The 50-day exponential moving average, located at $62,631, almost coincides with the pivot point, reinforcing support for a potential upside move.

In conclusion, Bitcoin will confirm the bullish trend if it gets above $63,000. However, a significant drop below this critical level could trigger sharp selling pressure.

Get benefits with 99Bitcoins

99Bitcoins, a leader in digital education, has decided to change the way users learn about cryptocurrencies and is launching a “Learn-to-Earn” system for this purpose. Participants will be able to improve their knowledge while earning 99BTC tokens, effectively helping to develop their expertise and expand their investment portfolio.

The current 99BTC token presale is attracting the attention of discerning investors who want to take advantage of the attractive entry price and staking option with an APY of 1,530%. This pre-sale represents a rare opportunity for early investors to acquire 99BTC tokens at a price of $0.00104. These tokens will not only be a reward mechanism, but will also provide access to premium content and other benefits within the community.

To date, the project has raised $1,137,732 and is fast approaching this phase’s goal of $1,892,544. There are less than six days left until the next phase of the presale, in which the price of the token will also increase. Interested investors can head to the project’s official website, where they can also take advantage of the staking option.

*The post is an advertisement. The author of the post is not the editors of the Kryptomagazin.cz portal. It therefore does not express the opinion of the editors or the operator of the Kryptomagazin.cz portal. If you use the messages and information provided in this article as investment recommendations or advice, you do so at your own discretion and at your own risk.