Bitcoin (BTC), the first and largest digital asset by market cap, has once again taken center stage with a significant rise in BTC price ahead of an update of United States economic data. This rise raises an important question: is this the beginning of a higher uptrend or just a momentary reaction to market expectations?
Bitcoin Price Rises 3%
Bitcoin (BTC), has shown tremendous strength by surging 3% on May 13, reaching peak exchange rates on exchange platform Coinbase. This increase occurred amid the anticipation of market participants against volatility that may occur along with the update of United States macroeconomic data to be released this week.
The crypto market is now waiting for the announcement of US inflation data that it claims will help determine the next move of the Federal Reserve – whether there will be a rate cut in 2024. The US Producer Price Index (PPI) is scheduled for release on Tuesday, May 14, followed by the Consumer Price Index (CPI) on Wednesday, May 15.
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Fed Rate Announcement
Market analysis by CME's FedWatch tool shows that there is a 72% chance that rates will remain stable at the July Federal Open Market Committee (FOMC) meeting, with rate cut expectations shifting to the end of 2024, currently at 48.6% for the September meeting. Meanwhile, the chance of a fixed rate at the June meeting is estimated at 91.1%.
Inflation Data Declines in Favor of Bitcoin
Leading analyst Tedtalksmacro highlighted that "inflation data is the main focus" in the current market dynamics. "Expect volatility," he said, adding that this may be the first time in some time we will see a slowdown in inflation data. A drop in inflation, he argued, would benefit riskier assets like Bitcoin and could push the market towards further gains.
Seth, another analyst, shared a technical analysis on May 12 showing that Bitcoin's relative strength index (RSI) has crossed the downtrend line on the daily time frame. He emphasized that this week's economic data, including CPI, Core CPI, PPI, and the speech of the Fed chairman, will have great potential in influencing the direction of BTC price.
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Coinbase Premium Index as Market Barometer
Bitcoin has been on a downward trend since dropping from its record high on March 14. The RSI approached oversold at 33 on May 1, signaling a potential trend reversal. According to data from CryptoQuant, the Coinbase Premium Index, which is an indicator of the price difference between the BTC/USDT pair on Binance and the BTC/USD pair on Coinbase Pro, has declined to near zero during the same period.
An analyst at CryptoQuant explained that Coinbase's Premium Index is a "main" indicator that is important in predicting the future of BTC's price. Historically, when this indicator reverses negatively and goes from a downtrend to an uptrend, the price of BTC always rebounds.
Bitcoin Price Today
At the time of writing, on Tuesday 14/05/2024, Bitcoin was trading at a price of IDR 997,818,696 per coin. Based on monitoring from Bittime, BTC price performance fell 1.16% in the last 24 hours.
Source: Bittime
Market Optimism
With these events, the crypto market continues to attract the attention of actors and investors. Uncertainty and speculation remain part of the crypto journey, and we will continue to monitor further developments. Attributing to the announcement of economic data to be released this week, crypto traders and investors are closely watching how these figures will affect Federal Reserve policy and, ultimately, crypto asset prices.
In addition, anticipated volatility may bring opportunities for wary traders, while those who are more conservative may choose to wait for further stability before making investment decisions.
Conclusion
Despite the short-term fluctuations, many analysts remain optimistic about Bitcoin's long-term potential. They point out that historical trends show similar patterns in previous market cycles, with prices reaching new highs after periods of consolidation and selling pressure from short-term holders.
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How to Buy Crypto on Bittime
You can buy and sell crypto assets in an easy and secure way through Bittime. Bittime is one of the best crypto applications in Indonesia that has been officially registered by Bappebti.
To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. In addition, also make sure that you have enough balance by depositing some funds into the wallet. For your information, the minimum asset purchase at Bittime is IDR 10,000. After that, then you can make a crypto asset purchase in the application.
Learn the Complete Guide on How to Buy Crypto on Bittime.
Monitor the price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
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DISCLAIMER: This article is informational in nature and does not constitute an offer or solicitation to sell and buy any crypto asset. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices may change significantly from time to time and Bittime is not responsible for fluctuations in crypto asset exchange rates.
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