 ▲ Bitcoin (BTC), dollar (USD) |
On the 12th (local time), all three major U.S. stock market indices started rising. The S&P 500 rose 0.86%, the Nasdaq rose 1.19%, and the Dow rose 0.08%.
In addition, when it was announced that the U.S. Consumer Price Index (CPI) rose 3.3% from a year ago, the price of Bitcoin (BTC) immediately began to show signs of recovery.
According to Cointelegraph, a cryptocurrency media outlet, MNTrading founder and CEO Michaël van de Poppe noted the weakness of the dollar after the CPI announcement. He said, “With the market predicting an interest rate cut, both dollar and government bond yields have plummeted. “It will be an important signal for Bitcoin and altcoins,” he argued.
CME Group's FedWatch Tool forecasts a 70% chance of an interest rate cut in September of this year.
Bitcoin showed a downward trend before the release of major U.S. economic indicators until the CPI announcement. This is an effect of the risk aversion trend that is often observed ahead of major economic announcements.
Market research firm 10X Research said that despite the prospect of an interest rate cut in September, the forecast that it would take some time for Ethereum (ETH) spot exchange-traded funds (ETFs) to be approved influenced the liquidation of long positions in Bitcoin. Diagnosed.
In addition, it was predicted that if Bitcoin exceeds $72,000, it will set a new all-time high.
FX Street, a virtual asset price analysis news platform, predicted that Bitcoin would successfully rebound from $64,240 and record an 11% rally up to the previous resistance level of $71,280.
Meanwhile, Massachusetts Democratic Senator Elizabeth Warren and Nevada State Senator Jacky Rosen are urging U.S. Federal Reserve Chairman Jerome Powell to lower interest rates ahead of the FOMC meeting. A letter containing the contents was sent.
According to the Daily Issue, Reps. Warren and Rosen emphasized the urgent need to lower interest rates, citing slowing economic growth and rising housing prices and insurance premiums as the main reasons for the current rise in inflation rates.
