#Bitcoinprice Chops Either Side of $64,000 Following Latest US Inflation Report – Here’s What You Need To Know
The Bitcoin price remained around $64,000 on Friday after the latest US inflation data showed a 0.3% MoM increase in the Core PCE index for March, exceeding the Fed's 2% target.
This translates to an annualized rate of approximately 3.6%, indicating persistently high inflation. Elevated housing and utility inflation could prompt the Fed to maintain higher interest rates for longer, presenting a near-term headwind for Bitcoin.
Despite a slowdown in the US economy, the Fed is expected to remain cautious regarding rate cuts until weakness translates into lower inflation, posing a continued headwind for Bitcoin.
Bitcoin is consolidating near the lower end of its range between $60,000 and $74,000. Stablecoin growth remains robust, signaling continued strong inflows into the crypto market, which could support Bitcoin's price.
However, any weakness in #stablecoin growth could pose downside risk for Bitcoin, potentially leading to a breach of range lows around $60,000 and further decline towards support at $53,000.
In the long term, Bitcoin's bullish thesis remains intact, driven by factors like the recent halving and increasing adoption in traditional finance and investment through #ETFs . Additionally, macroeconomic factors such as global currency debasement and the narrative of Bitcoin as "digital gold" support its long-term growth trajectory.
Technological advancements are enhancing Bitcoin's utility and accessibility, reinforcing its long-term outlook. Bitcoin is anticipated to challenge the $100,000 mark sometime between 2024 and 2025.
Source - cryptonews.com