According to Odaily, analysts from Bank of America have indicated in a report that the Federal Reserve's increased focus on the weakening U.S. employment market may cause next week's inflation data to be less significant. Following the moderate CPI and PPI data released earlier this month, the personal consumption expenditure inflation for August is set to be announced next Friday. Bank of America forecasts a monthly growth rate of 0.1%, down from July's 0.2%. Weekly jobless claims will be released on Thursday. Bank of America economists stated, 'We still believe that a dovish Federal Reserve combined with a resilient economy will lead to a steeper yield curve, including a steeper breakeven curve.'

The biggest cryptocurrency in the world, Bitcoin, hits the $60,000 price range Today, September 14. There are different reasons behind the price increase, but the most notable are the U.S. economic data and buying activities from big companies. In the next part of this article, we will explain this new price development in detail and what to expect next.

Reason Behind Bitcoin Rise at $60,000

One of the most obvious reasons behind Bitcoin’s recent move to $60k is the new PPI data release. PPI (Producer Price Index) is data that shows how much U.S. companies spend to produce a product or service in the country. The latest PPI data release saw an increase of 0.3%, a bit more than most people anticipated. 

People often use the PPI data to monitor inflation. Therefore, when there’s an increase in PPI data, people believe inflation is increasing. They usually want the U.S. Federal Reserve (the government institution responsible for cutting and raising interest rates) to step in with a lower interest rate. 

Crypto investors believe lower interest rates are suitable for the crypto market as they make borrowing cheaper. This means people will be able to borrow money to invest in crypto for bountiful returns.

Will the Federal Reserve Reduce Interest Rates? 

According to Chris Larkin, the Morgan Stanley E-Trade trading and investment managing director, many financial experts believe we might see a 0.5% interest rate cut from the Fed. The recent PPI data and the low unemployment filings support an interest rate cut.

People are now anticipating the new interest rate release from the Federal Reserve. A lower interest rate will encourage more people to take out loans. In return, some will invest their money into Bitcoin because of its high return on investment.

Big Businesses are Accumulating More Bitcoin

Another reason that stimulated the recent increase in Bitcoin’s price to $60k was the large number of buys from big and influential companies. For instance, Michael Saylor’s MicroStrategy (one of the corporate Bitcoin buyers) recently bought another 18,300 $BTC, increasing the company’s Bitcoin holding to $1.11 billion.

MicroStrategy has acquired 18,300 BTC for ~$1.11 billion at ~$60,408 per #bitcoin and has achieved BTC Yield of 4.4% QTD and 17.0% YTD. As of 9/12/2024, we hodl 244,800 $BTC acquired for ~$9.45 billion at ~$38,585 per bitcoin. $MSTR https://t.co/WBBRSKxA1U

— Michael Saylor (@saylor) September 13, 2024

Also, Marathon Digital Holding Inc., a Bitcoin mining firm, recently increased its Bitcoin holding by adding 5000 BTC. The company now owns 26,200 BTC, worth about $1.5 billion. 

When big companies like Microstrategy and Marathon engage in crypto trading activities, the crypto market often pays close attention to what they do. Investors believe these big companies have more information about the market movement and huge capital to ignite the move. Therefore, investors tend to follow the direction of these companies to leverage them to maximize gain.

The Rise of Bitcoin ETF

This week, Bitcoin ETF saw an increase in cash flow of $140.7 million. This signals institutional investors’ interest in Bitcoin is increasing. The crypto market might soon enter a new price rally if this huge cash inflow continues.

Will Bitcoin Increase in Price Continue?

As trading activities increase on the Bitcoin market, some financial analysts believe the $BTC price increase will continue for a while. Ali Martinez predicted the current Bitcoin price rally could hit the $64,300 price level.

Another financial expert is Ric Edelman, the founder of the Digital Assets Council of Financial Professionals. He made a long-term price prediction for  Bitcoin, believing $BTC could reach $420,000.

The current Bitcoin price action and economic data from the U.S. support some of these predictions. However, investors need to remember that Bitcoin and the entire crypto market are unpredictable. Therefore, trading cryptocurrency requires investors to do their personal research before investing in any crypto project.

The post Bitcoin Price at $60K — This is the Reason Behind the Surge appeared first on Coinfomania.

Just 24 hours ago, it was thought to be nearly a done deal that the U.S. Federal Reserve could trim its benchmark fed funds rate by just 25 basis points when it meets next week, but the calculus has quickly changed.

After all, the employment picture, as suggested by the August jobs report last week remained robust. And inflation, as shown by this week's CPI and PPI reports, continued to remain a bit stickier than hoped.

Wall Street Journal report Nick Timiraos – occasionally referred to as "Nikileaks" due to his excellent sources inside the Fed – Thursday afternoon, however, published an article suggesting the decision on the size of the rate cut was still up for debate.

"I think [it] is a close call," Jon Faust, previously a senior advisor to Fed Chair Jerome Powell, told Timiraos. "You can make a very good case for 50," said Esther George, president of the Kansas City Federal Reserve for more than a decade until last year. She noted that the Fed moved quickly to tighten policy above the "neutral" rate, so it might make sense for the central bank to move just as quickly to ease.

Shortly following the article, the chances of the Fed slashing 50 basis points next week – per CME FedWatch, which tracks positions in short-term interest rate markets – jumped to more than 40% from percentages in the high teens just a few days earlier. At press time, the odds of a 50 basis point cut had risen a bit further to 45%.

The news may also have been responsible for a quick turnaround in the U.S. stock market Thursday afternoon, which closed with decent gains after sporting losses earlier in the session. Bitcoin {{BTC}} too rose to about its highest in more than a week to $58,400 (it's since slipped to $57,800).

All things being equal, easier monetary policy is generally assumed to be a good thing for risk assets, bitcoin included. But in bitcoin's current bear phase, assumptions can quickly change. At least some analysts have said the Fed moving faster with rate cuts – to the extent that it signals the bank's worry about a struggling economy – might send prices even lower.

This important inflationary gauge comes amid increasing speculations in anticipation of a rate cut.

Aside from food and energy, the released data shows the US core PPI increased by 0.3%.

The data from the United States Bureau of Labor Statistics, released on Thursday, show that the US PPI inflation increased 0.2% in August. This aligns with the Dow Jones consensus estimate teased before the readings came out. This important inflationary gauge comes amid increasing speculations in anticipation of a rate cut by the Federal Reserve.

The Producer Price Index measures the final demand goods and services costs that producers receive. Aside from food and energy, the released data shows the US Core PPI increased by 0.3%, which is a little higher than the 0.2% consensus estimate. Noteworthy, this core increase remained the same even when trade services were excluded.

Rate Cut Likely by Fed

Based on 12-month trends, the headline US PPI saw a 1.7% increase. Similarly, the annual rate hit 3.3%, excluding food, energy and trade. Service prices contributed significantly to the PPI measure, with as much as a 0.4% monthly increase. This came from services like trade, transportation and warehousing. Guestroom rental with a 4.8% surge, was also a major contributor to the metric.

Chris Larkin, managing director of trading and investing for E-Trade at Morgan Stanley noted that the alignment of PPI’s repetition of yesterday’s US CPI inflation reading as well as its jobless claims with expectations, clears the decks for the Fed to kick off a rate-cutting cycle.

The markets are anticipating an initial 0.25% cut, but the discussion will soon turn to how far and fast the Fed is likely to trim rates over time, he added. At the time of writing, Bitcoin is trading at $58,237 as per data from CMC.

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According to Odaily, following the release of the US Producer Price Index (PPI) data, the swap market has remained stable. Market expectations indicate that the Federal Reserve is likely to reduce interest rates by a total of 100 basis points this year.

The CPI and PPI releases will likely have a large impact on Bitcoin’s price, and the asset may break above the $55k support.

The $55,000 price level can be considered a crucial psychological level for Bitcoin investors and its stability may affect the mood in the market.

Bitcoin trading volume has fluctuated with expectations of the economic reports which are currently at $32,753,860,881 down by 2. 92%.

The cryptocurrency market is at a crossroads as investors look forward to CPI and PPI figures to make their next moves. These economic factors have considerable influence over Bitcoin price movement, which may trigger a breakout above the current $55k support. These reports are being watched by the market analysts.This is because of the possibility of changing the investors’ attitude and bringing significant shifts in the price during the next several days.

$55,000 Support Level: A Critical Threshold

In the recent trading sessions,the $55,000 has been an important support level for Bitcoin. This threshold is regarded as one that has a psychological value in the market to the investors and traders. Trading above this level  may bring the much-needed boost to the market and create further potential for the extension of the buying rally. On the other hand, a break below $55,000 could have the signal of short-term bearish bias due to the elevated uncertainty among the traders.

https://twitter.com/CryptoMichNL/status/1833769950949031980

With increasing expectations towards the economic reports, the trading volume in the Bitcoin market has been observed to exhibit variations. BTC trading volume is $32,753,860,881 with a decrease of 2.92% market cap.

Higher levels of trading activity may indicate that major price changes are around the corner as investors and traders increase their activity levels. Other market sentiment indicators point to both optimism and apprehension prevailing ahead of the CPI and PPI releases with traders largely adopting a watch-and-wait approach.

Broader Economic Context and Bitcoin's Role

CPI and PPI are important leading indicators of the trend of inflation in the economy and have a bearing on consumption expenditure and producers’ prices. Some examples of assets that had positive responses to these factors include inflation hedge such as Bitcoin. 

Positive numbers will have a positive outlook to stimulate more funds as investors see it as a value investment. Bitcoin’s price has risen as anticipated with economic instability and with monetary policy and inflation factors being still relevant. Bitcoin has been in a process of transitioning from an object of macroeconomic desire.

The post CPI and PPI Reports Could Drive Bitcoin’s Next Surge—Will $55K Support Hold? appeared first on Crypto News Land.

In just 1 hour and 30 minutes, the CPI and PPI reports drop, and the markets are bracing for impact! 💥 These crucial economic indicators are notorious for shaking up the market, and institutional giants often jump the gun before the data is officially out—leaving smaller traders in the dust. ⚡

To avoid the chaos, now is NOT the time to make risky moves. ⚠️ Sit tight, stay alert, and let the market digest the storm before jumping back in. The **smart play**? Hold off on trading until the dust settles later this week when the waters are calmer and safer opportunities arise. 🧠

#MarketUpdate #CPI #PPI #TradeSafe #Volatility

Coinspeaker Bitcoin Stays Flat Ahead of CPI Data and Trump-Harris Debate

Bitcoin BTC $55 506 24h volatility: 2.4% Market cap: $1.10 T Vol. 24h: $26.65 B has remained relatively stable over the past weekend, staying between $55,000 and $58,000. Despite the calm, traders expect increased market swings as this week comes with crucial events including key US economic data, particularly the Consumer Price Index (CPI) released ahead. Alongside this, the upcoming Trump-Harris debate is set to influence market sentiment.

The lower trading activity in BTC followed Friday’s US jobs report, which triggered the liquidation of over $220 million in long positions. This sell-off weakened momentum, leaving traders on edge as they wait for more economic signals. 

Other major cryptocurrencies like Ethereum ETH $2 313 24h volatility: 1.6% Market cap: $279.14 B Vol. 24h: $12.89 B , Solana SOL $129.4 24h volatility: 0.8% Market cap: $60.68 B Vol. 24h: $2.10 B , and Tron TRX $0.15 24h volatility: 1.4% Market cap: $13.38 B Vol. 24h: $416.68 M  showed minor changes of about 0.6% in the last 24 hours. However, mid-cap tokens, such as BitTorrent (BTT), experienced a notable 128% rise.

Bitcoin’s Network Security Bolsters Bullish Sentiment

Despite the market’s stagnation, experts at Presto Research see Bitcoin as deeply undervalued. Analysts Peter Chung and Min Jung pointed out that the market is overlooking a key strength of Bitcoin: its network security. 

Bitcoin’s hashrate, which measures the total computing power securing the network, reached an all-time high of 679 exahashes per second (EH/s) in September 2024. This surge reflects increased mining activity, suggesting a solid foundation for long-term growth.

Chung and Jung argue that the rising hashrate signals a positive outlook. The availability of spot ETFs has placed Bitcoin in a stronger position than ever before, making it seem undervalued in their view.

This uptick in miner activity, which began in August, has often been a sign of market bottoms for Bitcoin. As miners expand operations, it shows their growing confidence in price stability. Many analysts believe this could be a catalyst for a significant rise in Bitcoin’s price.

CPI and Trump-Harris Debate Set to Shake Markets

Looking ahead, Bitcoin traders are closely watching two major events this week: August’s CPI data release on Tuesday and the Producer Price Index (PPI) figures on Wednesday. Both reports will offer key insights into the state of U.S. inflation and are likely to influence Federal Reserve policy in the coming months.

Meanwhile, the first Presidential debate between Donald Trump and Kamala Harris is adding to market jitters. Trump, who aims to turn the U.S. into a global crypto hub, might make statements that could shake both the political and crypto landscapes. 

Harris’s stance is less defined, but her team is reportedly exploring policies that could boost the cryptocurrency sector. As a result, the debate’s outcome could affect investor attitudes and introduce more market swings.

Adding to this, market expert Lucy Hu from Metalpha pointed to recent weaker US payroll data, which has triggered asset sell-offs since Friday. She noted that the crypto market is likely to remain unstable as the next Federal Reserve meeting approaches.

next

Bitcoin Stays Flat Ahead of CPI Data and Trump-Harris Debate

Last week was a brutal one for crypto markets, with losses extending into the weekend.

A raft of employment data out of the US didn’t prevent stock markets from falling either, as ‘Slumptember’ lives up to its name. This week will be heavy on inflation data with additional reports on jobless claims.

“This is the final week of inflation data before the long-anticipated September Fed meeting,” noted the Kobeissi Letter.

Economic Events Sept. 9-13

Wednesday will see August’s Consumer Price Index (CPI) report, which is one of two key inflation indicators used by the central bank. The data reflects price trends in the economy and shapes consumer spending so it is closely watched by Fed policymakers as it will impact rate decisions.

The August Producer Price Index (PPI) report will be released on Thursday, which reflects input prices for producers and manufacturers. It is also a pre-indicator of inflationary pressures as it measures the costs of producing consumer goods, making it a leading indicator for the following month’s CPI report.

Thursday will also see initial jobless claims data, which provides a broader picture of the labor market.

Key Events This Week:

1. OPEC Monthly Report – Tuesday

2. August CPI Inflation data – Wednesday

3. Initial Jobless Claims data – Thursday

4. August PPI Inflation data – Thursday

5. Continuing Jobless Claims data – Thursday

6. MI Consumer Sentiment data – Friday

This is the…

— The Kobeissi Letter (@KobeissiLetter) September 8, 2024

September’s Michigan Consumer Sentiment Index Consumer Inflation Expectations preliminary readings are released on Friday. These reports provide the results of a monthly survey of consumer confidence levels and views of long-term inflation. They are also used as a component of the Fed’s Index of Inflation Expectations calculations.

Following the weak economic data last week, the market is assessing the odds of a 25- or 50-basis point rate cut at the September Fed meeting, and the CPI report is likely to play a heavy role in that process.

A weaker-than-expected CPI report could increase the chances of a 50 bps rate cut at the meeting on September 18. The CME Fed Watch tool currently has a 31% chance of a larger rate cut.

Crypto Market Outlook

Theoretically, a larger rate cut would be good for crypto markets, but even that doesn’t appear to be enough to shake off the bearish sentiment at the moment.

Markets returned to levels not seen since the Black Monday Aug. 5 crash, with total capitalization dropping below $2 trillion late last week. It has since recovered to $2.03 trillion but remains at its lowest level since early February.

Bitcoin hit a weekend low of $53,300 but has since recovered to tap $55,000 during the Monday morning Asian trading session. Ethereum fared worse, with a brief dip below $2,200 over the weekend. The asset recovered the $2,300 level but remains weak.

The post 3 Things That Could Influence Crypto Markets This Week appeared first on CryptoPotato.

Bitcoin (BTC) starts a new week fighting to preserve key support as markets prepare for a deluge of macroeconomic volatility triggers.

BTC/USD holds $54,000 at the weekly close, giving traders modest confidence over how short-term BTC price action may shape up.

CPI and PPI lead a key week of US macro data prints, these coming less than ten days before the Fed interest rates decision.

Crypto funds shed $600 million over the past week, with spot Bitcoin ETFs also seeing steady net outflows.

BTC price performance is looking “eerily similar” to 2019, according to a fractal which has remained valid throughout this year.

Bulls are eyeing the odds of a 20% bounce as BTC/USD continues a sloping channel in place since March’s all-time high.

BTC price losses echo standard "Rektember"

Bitcoin managed to avoid a significant sell-off around the latest weekly close, setting it apart from the past few weeks.

BTC/USD 1-hour chart. Source: TradingView

Data from Cointelegraph Markets Pro and TradingView instead shows $55,000 as the level currently on bulls’ radar for a reclaim.

“If price can stay above $54.5k, I'm looking for a break above this green zone to see if Bitcoin can regain some upward momentum,” popular analyst Caleb Franzen commented in one of his latest posts on X alongside a chart.

BTC/USD 1-hour chart. Source: Caleb Franzen/X

Data from monitoring resource CoinGlass reveals a band of ask liquidity being added to the area around $55,500. In its own X post, CoinGlass itself said that it hoped for upward continuation.

Binance BTC/USDT perp order book data. Source: CoinGlass/X

“$52,500 must hold for continuation in the short term,” popular trader Crypto Tony meanwhile concluded about support levels.

“Interesting few weeks ahead.”

BTC/USD 1-week chart. Source: Crypto Tony/X

BTC/USD nonetheless remains down 7% in September, roughly in line with historical norms.

BTC/USD monthly returns (screenshot). Source: CoinGlass

"Bitcoin is in a Halving year. So it makes most sense to compare 2024 with previous Halving years," popular trader and analyst Rekt Capital argued while discussing the performance numbers.

"In the previous Halving years (2016 & 2020), Bitcoin enjoyed three straight months of upside across October, November and December."

CPI precedes key Fed rate cut decision

A bumper week of US macroeconomic data precedes the all-important Federal Reserve interest rates decision on Sept. 18.

The coming days will see both the Consumer Price Index (CPI) and Producer Price Index (PPI) numbers for August, along with more unemployment figures.

Whereas the latter saw the bulk of risk-asset reactions last week, now, markets are looking for any last-minute surprises which could change bets on what the Fed will do next.

“This is the final week of inflation data before the long anticipated September Fed meeting,” trading resource The Kobeissi Letter wrote in part of its latest X posts on the topic.

Kobeissi noted that US stocks had suffered since the month began, making Bitcoin and altcoins no outliers in their lackluster performance.

“September 2024 has still not seem a single green day in the S&P 500, a great trading setup,” it added.

The latest estimates from CME Group’s FedWatch Tool show markets still favoring an interest rate cut on the more modest side of the scale — 25 basis points rather than 50. This could change, however, as the macro data rolls in.

Fed target rate probabilities. Source: CME Group

Kobeissi, meanwhile, is among those arguing that the Fed is unlikely to surprise to the upside.

“As we have been saying for weeks now, both 50 bps rate cuts and emergency rate cuts are NOT needed,” it wrote last week after the unemployment data.

“While the labor market is cracking, the Fed needs to avoid moving too quickly again. The Fed has a bumpy road ahead.”

Crypto institutional investment sees a "red" week

The past week has not been kind to crypto institutional investment products as capital flees the sector.

In a particularly bearish market appraisal, Bank of America (BoA) revealed the worst slew of crypto fund outflows since the 2022 bear market.

At around $600 million last week alone, this, Kobeissi notes, thus represents the second-largest such outflow in the history of the industry.

“Over the last several weeks, crypto funds have regularly seen outflows unlike in Q1 when weekly inflows were as much as $3.3 billion,” part of an X post reported.

“Risk appetite in crypto seems to have disappeared despite expectations that the Fed will cut rates this month.”

Crypto fund flows. Source: The Kobeissi Letter/X

The picture is similarly grim for the US spot Bitcoin exchange-traded funds (ETFs), which recorded net outflows every day last week.

Data from UK-based investment firm Farside Investors reveals that two out of the four trading days recorded net outflows above $200 million.

“Bitcoin is down~15% over the last two weeks and is trading ~25% below its all-time high,” Kobeissi concluded.

“Are crypto markets entering a bear market?”

US spot Bitcoin ETF flows (screenshot). Source: Farside Investors

Bitcoin 2019 comparison nears "critical juncture"

Current BTC price action is drawing increasing comparisons to distant 2019 — two block subsidy halvings ago.

Then, BTC/USD saw a long-term high around half way through the year before consolidating until Q4 2020. During that time, it witnessed the COVID-19 cross-market crash.

For Julien Bittel, head of macro research at Global Macro Investor, history is now repeating itself.

“This year’s Bitcoin price structure is starting to look eerily similar to 2019… Take a close look at the chart – it’s almost a perfect fractal of what we saw back then,” he told X followers at the weekend.

”Bitcoin has been stuck in a consolidation phase, and interestingly, just like in 2019, this consolidation has lasted exactly 175 days (so far). We’re now approaching that critical juncture where things could start moving in a big way.”

BTC/USD fractal. Source: Julien Bittel/X

The fractal in question suggests that BTC/USD may be imminently due an “inflection point” and return to upside which should last.

“The next week will be incredibly important to watch,” he summarized.

Cointelegraph recently reported on another 2019 comparison from crypto analyst and entrepreneur Michaël van de Poppe, who likewise sees a turnaround in Bitcoin’s fortunes potentially being right around the corner.

Popular trader Peter Brandt, meanwhile, has warned that BTC/USD is behaving too sluggishly since its most recent halving event in March.

Respecting the channel

More short-term hope for Bitcoin bulls comes courtesy of a simple regression channel this week.

Related: Bitcoin range recovery could boost UNI, SUI, OP and HNT

As flagged by popular analyst Caleb Franzen, BTC/USD is currently challenging support at the lower boundary of a channel it has respected since mid-March and its $73,800 all-time highs.

The channel neatly summarizes the six months of consolidation seen since — and even the dip below $50,000 seen in early August was not enough to invalidate it.

“Bitcoin just had its 4th daily close below the regression channel,” Franzen confirmed on Sept. 7, identifying three other similar occasions.

While stressing that a rebound is not guaranteed simply by such a daily close, he noted that the three previous cases all resulted in BTC price upside of “at least” 20%.

Here, a repeat performance would see a trip to around $65,000 — itself capping a key technical area for Bitcoin, playing host to the aggregate cost basis for short-term holders.

BTC/USD 1-day chart. Source: Caleb Franzen/X

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Key Points:

U.S. set to reveal crucial Consumer Price Index (CPI) and Producer Price Index (PPI) (CPI and PPI) for October—market-altering insights expected.

Emergency appropriation bill, expiring Friday, raises the specter of a U.S. government shutdown—implications for financial markets and services.

Investors brace for potential economic impacts as CPI/PPI data and the risk of a government shutdown converge this week.

United States is gearing up to unveil critical Consumer Price Index (CPI) and Producer Price Index (PPI) data (CPI and PPI) for October.

Investors and analysts alike are on the edge of their seats, anticipating the potential market implications of these key economic indicators.

Simultaneously, the specter of a government shutdown looms as the emergency appropriation bill, passed by the U.S. Congress in September, is set to expire on Friday. The expiration of this funding measure raises concerns about the continuity of government operations and public services, injecting an element of uncertainty into the financial landscape.

The CPI and PPI data for October hold the promise of providing valuable insights into the inflationary pressures facing the U.S. economy. These indicators play a crucial role in shaping monetary policy decisions and influencing market sentiment. Investors will be closely scrutinizing the figures, seeking clues about the trajectory of inflation and its potential impact on interest rates and financial markets.

The Impact of October CPI and PPI Unveiled

On the legislative front, the impending expiration of the emergency appropriation bill adds an extra layer of complexity to the economic landscape. The U.S. government is once again teetering on the brink of a shutdown, a scenario that could have far-reaching consequences. Market participants are keenly aware of the potential disruptions a government shutdown could entail, from delayed economic data releases to the suspension of federal services.

Market watchers will be monitoring developments closely, balancing the nuanced interplay between economic data releases and legislative maneuvers. The confluence of these events underscores the delicate equilibrium the U.S. finds itself in, navigating the challenges posed by economic data fluctuations and the specter of a government shutdown. Investors and analysts alike are poised to react swiftly to the unfolding narrative, recognizing the significance of this week's dual economic and legislative dynamics.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.