Bitcoin Surges Past $64,000 Amid Optimism Over Potential Fed Rate Cuts. 🔥
On May 15th, Bitcoin surpassed $64,000, driven by encouraging economic data from the United States. Core inflation has reached its lowest level in three years, sparking optimism about potential interest rate cuts by the Federal Reserve and boosting Bitcoin and other risk assets.
The Consumer Price Index (CPI) for April came in lower than expected, showing a monthly inflation rate of just 0.3%. This positive CPI data contributed to record highs for the S&P 500 and Nasdaq Composite Index, although market analysts have mixed reactions about the implications of this data.
In contrast, the Producer Price Index (PPI) has increased for the third consecutive month, with Fed Chairman Jerome Powell describing the PPI data as "mixed." Despite the positive CPI news, the FedWatch Tool indicates a low probability of near-term rate cuts, with just a 3.1% chance for June and a 28.3% chance for July.
Bitcoin's price movements have been influenced by increased liquidity at the $65,000 level and strong support identified at $63,200 on the 4-hour chart. Traders emphasize the importance of spot buyer activity to maintain upward pressure on Bitcoin's price. To boost market confidence, Bitcoin needs to surpass and hold above the $65,000 resistance level.
As market sentiment fluctuates, traders and investors are closely watching the Federal Reserve's next moves and Bitcoin's key resistance levels.