Bitcoin (BTC) price rose 3% on May 13 as crypto traders anticipated price volatility ahead of this week’s U.S. macroeconomic data update.
Data from Cointelegraph Markets Pro and TradingView showed intraday BTC price high of $63,269 on Coinbase shortly after the Wall Street open on May 13.
BTC/USD daily chart. Source: TradingView
This week, market participants await the United States inflation data to help determine whether the Federal Reserve will lower interest rates in 2024.
The U.S. Producer Price Index (PPI) print is expected on Tuesday, May 14, followed by the Consumer Price Index (CPI) reading on May 15.
According to the CME’s FedWatch tool, market analysts forecast a 72% chance of rates remaining the same at July’s Federal Open Market Committee (FOMC) meeting, with the possibility of rate cuts pushed later in the year, at 48.6% at September’s meeting. Traders forecast a 91.1% chance that rates will remain unchanged at June’s meeting.
Target rate probabilities for June 12, 2024 Fed meeting. Source: CME
Commenting on market dynamics this week, popular analyst Tedtalksmacro said that the “inflation data is center-stage.”
“Expect volatility. However, this is the first time in a little while that we are likely to see inflation data slow.”
The analyst explained that reducing inflation will be “good for risk assets like Bitcoin,” putting the market on the “verge of a leg higher.”
Fellow analyst Seth shared the following chart in a May 12 post on X, saying that the relative strength index (RSI) had broken above a descending trendline on the daily timeframe.
The analyst acknowledged that this week’s “CPI, Core CPI, PPI and FED chair speech” is likely to affect the direction of BTC’s price.
“Jerome Powell likely pump our bags. The U.S. economy isn’t as strong as the Data suggest. True Unemployment Rate published by the Ludwig Institute reports at 24.2% compared to 3.8% reported from U.S..Dep.Labor!”BTC/USD daily chart. Source: Seth
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