Bitcoin Holds $58,000 Despite Mixed US Macro Signals After PPI Release
The cryptocurrency market saw mixed signals on September 12 as the price of Bitcoin (BTC) continued in its choppy movements following the release of new U.S. macro data. The leading digital asset plummeted below $58,000 in the Wall Street open but traded back above $58,000, and is currently up 0.24% over the past 24 hours.
The latest U.S. Producer Price Index figures saw an August's month-on-month increase of 0.3% beat expectations, while the year-on-year rate of 2.4% was lower than expected. This contrasted with similar patterns witnessed in the latest Consumer Price Index reports.
The ambiguity in the market was further added to by unemployment claims, which had 230,750 new filings over the forecasted 227,000. Despite these mixed signals, expectations from market analysts remain upbeat on the Federal Reserve's decision with regards to interest rates.
Trading resource The Kobeissi Letter said the Fed would likely only cut the interest rate by 0.25% at its September 18 meeting. CME Group's FedWatch Tool has backed that up, showing an 85% likelihood of a 0.25% rate reduction.
However, the crypto market remains skeptical. Trader Skew pointed out massive resistance at $60,000, which will require a great deal of upward buying pressure to break. Per data from CoinGlass, the ask liquidity was continuously improving at $58,500, thus keeping price caps below this level.
Amid such tentative signals, both investors and traders are still paying due attention to the bigger picture, trending macros, and levels of technical resistance. The next big move in Bitcoin is likely to be triggered by the highly anticipated September 18 FOMC meeting.
