Bank of America (BoA): June will be an 'unforgettable' month
According to analysts at Bank of America, many central banks have taken action this week, such as the Bank of Sweden cutting interest rates, and the Bank of England is more confident than expected that inflation will move in the desired direction. Analysts at Bank of America pointed out that this is just a glimpse of market dynamics in June, when central banks will make key decisions. "This may be one of the most important months for the market in a long time."
Source: Bitcoin Sistemi
The Federal Reserve quietly starts printing money, and Bitcoin prices are expected to rise
In the global economy, central banks continue to accelerate the printing of fiat currency. This behavior not only injects liquidity into the financial system, but also raises concerns about the depreciation of the US dollar. The threat of this currency devaluation is worrisome, questioning the stability of the traditional financial system and prompting investors to seek alternative stores of value.
The impact of US money supply on Bitcoin price
The recovery in the US M2 money supply presents a bullish outlook for Bitcoin. Increases in the M2 money supply have traditionally been associated with a weaker U.S. dollar, which typically incentivizes more funds to flow into Bitcoin, pushing up its price.
Data provided by the Federal Reserve show that the M2 money supply fell to $20.841 billion in March 2024 from a peak of $21.722 billion in April 2022, the first time since the Great Depression that there has been a decline of at least 2%. Given Bitcoin’s reaction to previous M2 money supply increases, historical data suggests Bitcoin may be gearing up for another significant uptrend.
Source: Fred
Bitcoin price trends and market analysis
Bitcoin price action shows a period of consolidation within a broad descending channel. In recent market activity, Bitcoin prices have once again tested the $60,000 barrier. A break above this level could lead to a breakdown of the descending channel and a further push towards the $52,000 support zone. Public interest in Bitcoin is currently up 0.58% in the past 24 hours, reaching $16.3 billion.
Image source: TradingView
The Relative Strength Index (RSI) shows bullish sentiment, with values above 50% indicating the dominance of buyer momentum. Once above $60,000, the market will face further upward pressure. As Bitcoin struggled to maintain its upward trajectory and hit new highs, bears seized the opportunity to push the price lower, but it clearly wouldn’t be for long. Current market sentiment suggests investors adopt a cautious strategy and pay close attention to key support and resistance levels for potential trading opportunities.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
