Bitcoin’s meteoric rise continues to captivate the financial world as the leading cryptocurrency recently crossed the important $30,000 milestone. With this unprecedented rise in value, crypto enthusiasts are keenly watching the market, seeking to predict future of bitcoin,
As the digital asset’s price trajectory defies conventional market analysis, we delve into the factors driving its growth, explore potential risks and rewards, and forecast bitcoin’s next move in this rapidly evolving landscape. Let’s try.
Key Fundamentals Driving BTC Price
In the US, 236,000 more jobs were added than estimated in the non-farm payroll establishments survey, which exceeded expectations by 230,000. Moreover, the salary hike remains at a rate that deviates from the 2% inflation rate.
Investor focus turns to inflation and upcoming CPI report
With the CPI report scheduled for Wednesday, April 12, investors’ attention has now shifted from the job market to inflation. US Federal Reserve meeting,
Many market experts believe the meeting will signal the end of a long cycle of rate hikes by the central bank.
US inflation showing signs of slowing
in inflation US declined to 0.4% 6% annually in February from 0.5% in the previous month and 6.4% in the previous month. However, the upcoming data is likely to show a significant uptick, as the core CPI may exceed the headline CPI for the first time in a long time.
US dollar index falls amid strong labor market
Nevertheless, the US Dollar Index (DXY) declined 0.19% to 102.05. The US dollar took a pause after its biggest month-to-date gain against key rivals, as a firm US labor market bolstered the need for a Fed rate hike next month.
Bitcoin Soars As Traders Anticipate Fed Response To CPI Report
Bitcoin price rises as traders discuss whether Fed will change course after crucial CPI report. If the data indicates that inflation is on the decline, this could be the next potential trigger for BTC/USD to move higher.
Fed rate hike effect on bitcoin price
According to CME Fedwatch Tool, the market expects a 71% chance of the Fed increasing rates by 25 basis points at its May meeting. A tight labor market may be to blame, giving the Fed a reason to keep raising interest rates in the future.
However, these odds are highly flexible and react quickly to any new macro data releases such as the CPI. A decline in headline CPI could increase the likelihood of a dovish shift in Fed policy. Conversely, persistent inflationary pressures would encourage markets to predict further interest rate hikes in May.
Furthermore, the upcoming Fed minutes expected on Wednesday will be another important trigger for the BTC/USD exchange rate. These minutes will shed light on what Fed officials discussed last week and what to expect.
Crypto-related stocks soar
Shares of companies with significant ties to cryptocurrencies are seeing notable gains, including Marathon Digital (MARA), Coinbase (COIN)which gained more than 7%, and MicroStrategy (MSTR), which gained more than 7.5%.
Additionally, the highest percentage of stock gains on Monday belonged to bitcoin miners. In addition to Marathon Digital’s 12% gain, other bitcoin miners such as Riot Blockchain (RIOT) and Hut 8 Mining (HUT) are up 13% and 10%, respectively.
Crypto-related stocks soared as BTC/USD surged to its highest level since June 2022.
bitcoin price
current live bitcoin price stands at $30,257 with a 24-hour trading volume of $20.8 billion. Bitcoin is up 3.50% in the last 24 hours. It holds the #1 position on CoinMarketCap, with a vibrant market capitalization of $585 billion.
From a technical analysis perspective, the BTC/USD pair is showing a definite bullish trend towards the $30,000 milestone. If this level is overcome, BTC price could face resistance at $30,000 before correcting higher towards $31,000 or possibly $32,250.
Conversely, bitcoin remained stable with support near the $28,900 level.
Top 15 Cryptocurrencies to Watch in 2023
To stay up to date with the latest ICO projects and altcoins, it is recommended to regularly consult our expert-curated list of the Top 15 Cryptocurrencies to Watch in 2023.
Doing so will help you stay well informed about emerging trends and opportunities in the crypto market.
Disclaimer: The Industry Talks section features insights by crypto industry players and is not part of the editorial content of 0x0news.com.
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