The macro outlook for Bitcoin remains positive, keeping investors optimistic about a potential rise.
Bitcoin and Ethereum in “wait and see”: they await key data on the US economy
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The price of Bitcoin, currently trading at US$68,385, shows little variation in the last 24 hours. Despite this, still fails to overcome the key resistance and support level of $68,500, a threshold it has been trying to solidify for some time. On the other hand, Ethereum (ETH) remains stable around US$3,740 since yesterday.
In the altcoin market, movements are varied but generally contained. Solarium (SOL) has increased by 0.25%, Cardano (ADA) 0.6%, Avalanche (AVAX) 0.7%, while Toncoin (TON) remains stable after a 5% rise in the last week. On the falls side, Shiba Inu (SHIB) has retreated 3% after an 8% rise since last Friday, followed by Dogecoin (DOGE), XRP and Polkadot (DOT), with more moderate decreases.
The macro outlook for Bitcoin remains positive, keeping investors optimistic about a potential rise.
This sentiment could also benefit altcoins, which often follow BTC’s trend. The total crypto market capitalization (TOTALCAP) shows a notable rise and fall intraday, with Bitcoin slowly approaching the critical level of $68,500. ORDI has also performed well, recording a 14% increase to trade at $50.9. The total valuation of cryptocurrencies reached an increase of almost $54 billion at its intraday high, although it fell by $34 billion at the lowsclosing positively at US$2.47 billion.
Cryptos: waiting for key data
Regarding economic expectations, investors are attentive to the possible interest rate cuts that the Federal Reserve (Fed) at the end of the year, which remains the main focus of attention. The reading of the April personal consumption deflator (PCE inflation) in the United States, to be published this Friday, could be crucial in forecasting the next moves by the central bank, which has adopted a tougher-than-expected stance in recent weeks. This indicator is anticipated to remain at 2.7% annually and 2.8% underlying.
“Although it would be its lowest level since March 2021, it would indicate the difficulty of continuing to decline. We will see if the data confirms the current market expectation of a single Fed rate cut in 2024“, explain Renta 4 analysts.
The market has been nervous about the recent hawkish statements from the Fed, especially from the president of the Minneapolis Fed, Neel Kashkari, known for its aggressive stance. Additionally, spot ether exchange-traded funds (ETFs) remain a point of interest.
The recent approval of these ETFs has not had a major impact on cryptoasset prices, although many analysts remain optimistic about their potential to attract institutional investment.. BlackRock recently updated a document necessary for the Securities and Exchange Commission (SEC) to approve its ETH ETF, interpreted as a positive sign by Bloomberg experts.
However, the little movement observed after the approval of the ETH ETFs has led some analysts to remember that what really boosted the price of cryptocurrencies was not the approval of the BTC ETFs, but the expectations of interest rate cuts.
The analysts of JP Morgan emphasizes that the demand for ETH ETFs will be much lower than that of BTC funds and will be affected by investors that they can liquidate their positions in Grayscale’s ETH fund, ETHE, similar to what happened with the Grayscale Bitcoin Trust (GBTC).
Source: Ambito
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