Cryptocurrency

Here Are The Potential Consequences For Bitcoin!



Sat 29 Jun 2024 ▪
3
min of reading ▪ by
Luc Jose A.

Inflation slowed in May in the United States. This development has sparked significant interest among cryptocurrency investors, who are wondering how bitcoin and altcoins will react to this decrease. Analysts offer different interpretations and perspectives following this economic change.

Bitcoin :

The PCE inflation index falls to 2.6% in the United States

Recent economic data shows a decline in inflation in the United States, measured by the Personal Consumption Expenditures (PCE) price index. The Bureau of Economic Analysis reported that PCE inflation fell from 2.7% to 2.6%, in line with market expectations. Additionally, core inflation, which excludes volatile items such as food and energy, also decreased, falling from 2.8% to 2.6%. This decline represents the slowest rate of price growth since March 2021, signaling a cooling of inflationary pressures.

This moderation in inflation could have major implications for upcoming monetary policies. Indeed, the likelihood of an interest rate cut by the Federal Reserve in September has increased, as indicated by the CME FedWatch Tool. Investors and economists are closely monitoring these developments, as a rate cut could stimulate financial markets and offer welcome relief after a period of rising costs.

Analysts’ Predictions for Bitcoin and Altcoins

Michael van de Poppe, a well-known analyst in the crypto industry, predicts that bitcoin will continue to consolidate in the coming days. While he anticipates potentially higher returns for altcoins, he has yet to observe signs announcing an altcoin season. Trader and analyst Rekt Capital, followed by more than 471,000 people on Twitter, highlights that bitcoin is situated just below the top of the bull flag, suggesting continued consolidation before a possible breakthrough.

Bitfinex analysts, on the other hand, point out persistent uncertainty and increased volatility in the cryptocurrency market. They note that the presidential debate between Donald Trump and Joe Biden has intensified market movements as investors digest the political implications.

According to analysts, Donald Trump’s stance, who has recently embraced the cryptocurrency industry, has favored the rise of memecoins like TRUMP and MAGA, with respective increases of 11% and 16%. These dynamics indicate that despite increased volatility, there is significant resilience and adaptability within the crypto market.

The recent inflation data brings a breath of optimism to the crypto market. With a possible interest rate cut by the Fed, bitcoin and altcoins could experience a rebound after a period of consolidation, marking a new chapter in the current economic dynamic.

Maximize your Cointribune experience with our ‘Read to Earn’ program! Earn points for each article you read and gain access to exclusive rewards. Sign up now and start accruing benefits.

Click here to join ‘Read to Earn’ and turn your passion for crypto into rewards!

Luc Jose A. avatarLuc Jose A. avatar

Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d’une certification consultant blockchain délivrée par Alyra, j’ai rejoint l’aventure Cointribune en 2019.
Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l’économie, j’ai pris l’engagement de sensibiliser et d’informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu’elle offre. Je m’efforce chaque jour de fournir une analyse objective de l’actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.





Source link

Leave a Response