Busy week for bitcoin despite better-than-expected inflation
Last week was a choppy one for bitcoin (and crypto assets in general) prices following US inflation data and the conclusion of the latest FOMC meeting, where Fed officials released their latest "dot- plot".
Cryptocurrency prices were initially helped by the CPI data, with the headline and underlying indices coming out lower than expected. Bitcoin rose from $67,700 to $70,000 on a better-than-expected inflation reading, but then gave back all gains as the Fed's dot-plot cooled market expectations for rate cuts. of interest.
The Fed's latest "dot-plot" now projects just one rate cut this year, down from three cuts forecast at the March meeting. However, the chart indicated a more aggressive path for rate cuts in 2025, with up to four cuts, adding up to a full percentage point.
On the macroeconomic front, attention will now turn to US retail sales data, jobless claims and manufacturing and services PMI data, due to be released this week on Tuesday, Thursday and Friday, respectively. Figures that deviate significantly from forecasts could cause some volatility in the cryptocurrency and stock markets.
