Lưu trữ cho từ khóa: Federal Reserve

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Strong US GDP data puts Bitcoin, Jasmy, Avalanche recovery at risk

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Strong US GDP data puts Bitcoin, Jasmy, Avalanche recovery at risk

Falling cryptocurrencies like Bitcoin, Jasmy, and Avalanche could face further downsides after the U.S. published strong gross domestic product and jobless claims data.

Bitcoin (BTC) ‘s price retreated by almost 4% on Thursday and was trading at $63,950. Other altcoins, like JasmyCoin (JASMY) and Avalanche (AVAX), performed worse, falling by over 10%. The two have slipped for four consecutive days and are hovering at their lowest swings since July 14. 

Bitcoin, Avalanche, Jasmy prices | chart by TradingView

Most of this decline is likely because of the ongoing liquidation of Bitcoin from Mt.Gox wallets. Kraken has already distributed its coins, while Bitstamp will move coins worth $3 billion on Thursday. 

US GDP and jobless claims data

The other risk facing Bitcoin, altcoins, and stocks is that the U.S. economy is doing better than expected. In a report, the Bureau of Economic Analysis said that the economy expanded by 2.8% in the second quarter, beating the median estimate of 2.0%. It was also better than Q1’s growth of 1.4%.

Another report revealed that the initial jobless claims dropped from 245,000 to 235,000 last week. That number was also better than the median estimate of 237,000.

These numbers mean that the Federal Reserve may decide to hold rates higher for longer than expected. 

In previous statements, Jerome Powell and other officials have expressed concerns that the economy was slowing. In particular, the Fed is more concerned about the labor market as the unemployment rate rose to 4.1% in June, its highest point since 2021.

Still, economists expect the Fed will leave interest rates unchanged in its meeting next week. The CME Fed Watch tool estimates that the bank will cut rates in September. 

Looking ahead, the next crucial economic data to watch will come out on Friday, when the US will publish the personal consumption expenditure (PCE) data. PCE is the Fed’s favorite inflation gauge. 

Implication on Bitcoin, Jasmy, Avalanche and altcoins

A hawkish Fed would be negative for Bitcoin and other altcoins because these assets do well in a low-interest rate environment. For example, Bitcoin jumped to a record high of $68,000 in 2021 as the Fed brought interest rates to zero. 

Steeper rate cuts would incentivize investors to move to riskier assets. Some of these investors would move from money market funds, which have over $6.1 trillion in assets, to other assets like stocks and cryptocurrencies.

Bitcoin and Ethereum will likely see more inflows from institutional investors now that the SEC has approved spot BTC and Ether ETFs. 

Bitcoin rejected at a key level

Bitcoin price chart | Source: TradingView

The other risk that altcoins face is based on technical issues. As shown above, Bitcoin’s retreat happened after failing to pierce the descending trendline that connects the highest swings since March. That indicates that the coin could see more downside as sellers target the key support at $60,000.

On the positive side, Bitcoin has formed a falling broadening wedge pattern, a popular sign of a bullish continuation. This means that the coin may have some upside, but only if it crosses the descending trendline.

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Theo Crypto News

Bitcoin

US Senator plans to announce legislation for Strategic Bitcoin Reserve at Bitcoin 2024 

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Sen. Cynthia Lummis of Wyoming is poised to announce legislation that could establish Bitcoin as a mainstream financial asset in the United States.

At the upcoming Bitcoin 2024 conference in Nashville, Tennessee, where former President Donald Trump is also set to speak, Lummis aims to announce a bill requiring the Federal Reserve to hold Bitcoin (BTC) as a strategic reserve asset. 

If successful, this move would mark a significant shift in U.S. monetary policy, aligning Bitcoin with traditional reserves like gold and foreign currencies.

The bill’s details remain under wraps, but insiders revealed it directs the Fed to incorporate Bitcoin into its reserves to enhance the stability of the U.S. dollar. Lummis has support from Senate Banking Committee colleagues and hopes for Trump’s endorsement. 

Fox Business was the first to report on the potential legislation.

What a U.S. Bitcoin reserve would look like  

If the United States were to adopt Bitcoin as a strategic reserve asset, it could leverage its position as the largest nation-state holder of Bitcoin and echo Trump’s sentiment that all remaining Bitcoin should be mined in the United States. 

Essentially, a Bitcoin strategic reserve asset would involve the U.S. Treasury holding significant amounts of Bitcoin as part of its reserve portfolio, similar to how they already do with gold or foreign currencies.

A reserve would be a formal nod by the U.S. government to Bitcoin’s legitimacy and future use cases. The move would position the U.S. favorably against global competitors and accelerate the acceptance of Bitcoin as a digital gold and long-term savings instrument. 

Bitcoin in the middle of politics

The proposal arrives amid a politically charged climate. Vice President Kamala Harris, the presumptive Democratic nominee, is receiving advice to soften the administration’s stance on crypto. 

As the U.S. already holds a substantial amount of Bitcoin, the potential legislation could spark a global race among nations to accumulate more of the asset. 

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Pepe price forecast: here’s why the $PEPE token is rebounding

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Pepe (PEPE) price bounced back on Wednesday following the release of encouraging US Consumer Price Index (CPI) data. Pepe jumped to a high of .00014 in a high-volume environment. It has soared by over 23% from its lowest point this week.

Buying the dip after the CPI data

The Bureau of Labor Statistics (BLS) published encouraging inflation data. The headline Consumer Price Index (CPI) dropped from 0.3% to 0.0%, missing the expected 0.1%. The CPI dropped for the second straight month on an annualised basis. It dropped to 3.3% from the previous 3.4%. Excluding the volatile food and energy prices, inflation dropped to 0.2% MoM and 3.4% YoY.

These numbers came ahead of the Federal Reserve interest rate decision. Analysts expect the Fed’s officials will welcome the current inflation numbers and look to cut rates in the coming months. Rate cuts in general represent a positive catalyst as lower cost of borrowing increases the attractiveness of speculative investements, especially meme coins.

The rebound in Pepe’s price was also supported by a broader uptrend in the cryptocurrency market as investors waiting patiently on the sidelines were given a reason to start buying. Bitcoin jumped to ,600 while Ethereum jumped to ,645. Other meme coins like Bonk, Dogwifhat, and Book of Meme also bounced back. These tokens could see a harsh reversal if the Fed delivers a hawkish decision.

Last, Pepe’s momentum can be due to a classic case of buying the dip. Notably, the coin was down by around 35% from its highest level this week. This rebound happened in a high-volume environment. According to CoinGecko, the daily volume of Pepe jumped to over .28 billion, up from Tuesday’s 4 million. 

Pepe price prediction

The daily chart shows that the price of Pepe bounced back after the weak US inflation data. It rebounded after bottoming at .00001120, its lowest point this week. This price was a few points above the crucial support at .00001080, its highest swing on March 14th.

Pepe has now moved above the 23.6% Fibonacci Retracement level, which is a positive sign. Also, it has jumped above the 50-day and 25-day moving averages and the first resistance of the Andrew’s pitchfork tool.

Therefore, the token will likely continue rising as buyers target the next psychological level at .00015, 10% above the current level. A break above this level will see it soar to the year-to-date high of .0000172.

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Bitcoin

Bitcoin price dives to $66k ahead of FOMC decision; bullish analyst says “we’ve seen this before”

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Bitcoin price slumped nearly 5% on Tuesday, hitting lows of k as the crypto market turned negative ahead this week’s FOMC meeting.

BTC price dropped to lows of ,018 on Coinbase to wipe out gains seen when prices reached highs of ,974 last Friday.

CoinGecko data showed Bitcoin traded nearly 5% down in 24 hours. The flagship cryptocurrency has pared weekly gains and was down 6% during this period at the time of writing.

Why is Bitcoin price down on Tuesday?

The benchmark cryptocurrency’s struggles this week come after spot Bitcoin ETFs snapped a decent 19-day streak of net inflows on Monday. Data showed the sector recorded outflows of about million.

Also on Tuesday, a Bitcoin wallet that had been dormant for more than 5 years, suddenly woke up and transferred 8,000 BTC worth more than 5 million to several addresses, including Binance.

According to Lookonchain, this wallet received 8,000 BTC on December 6, 2018. The price of Bitcoin was ,810 at the time.

Risk-off mood ahead of CPI and FOMC

While price remains well above the psychological ,000 level, the upcoming FOMC minutes and Fed Chair Jerome Powell’s commentary has investors keenly watching.

It ties in with the overall macro environment, including the economic reports expected this week, and market experts have signaled this as a scenario that could feature highly on investors’ list of factors to consider.

“Markets are risk-off mode ahead of CPI and FOMC tomorrow. This month’s FOMC will also release the Dot Plot, which informs the market how many cuts the Fed anticipates for the rest of 2024,” analysts at QCP Capital, a global digital asset trading firm and market maker, said.

Analyst: ‘we’ve seen this before’

Although prices could dip further ahead of these macroeconomic reports and Fed’s interest decision, pseudonymous crypto analysts Moustache and Max say FOMC has historically been bullish for Bitcoin.

“FOMC tomorrow and $BTC forms a bullish inverse head & shoulders pattern here. The past FOMC meetings have already marked the low of the left shoulder + head. Right shoulder next?” crypto trader Moustache pointed out to his 123,000 X followers.

Sharing a Bitcoin price chart with FOMC meetings mapped on it, Max notes the last three have coincided with a dip and then a bullish flip. “We’ve seen this before,” the analyst posted on X.

“Bitcoin loves to rebound after every FOMC meeting,” another crypto analyst Ali Martinez noted.

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Jasmy Price Prediction: bullish pattern forming

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JasmyCoin (JASMY) price has lost momentum in the past few days as focus shifts to the upcoming Federal Reserve interest rate decision. The token was trading at .039 on Monday, down from this month’s high of .045. It has been one of the hottest token this year as it jumped by over 720% from its lowest point in January.

Federal Reserve decision ahead

Jasmy’s strong rally stalled after the US published strong jobs numbers on Friday. According to the BLS, the economy created over 272k jobs in May, beating the consensus estimate of 183k.

While the unemployment rate rose to 4.0%, the country’s wage growth gained momentum, rising by 4%. These numbers came two weeks after the US released strong consumer confidence numbers.

They also came as the Federal Reserve prepared to deliver its June interest rate decision. Most analysts expect that the bank will leave interest rates unchanged between 5.25% and 5.50%. The dot plot will also point to a potential rate cut later this year.

Jasmy and other cryptocurrencies tend to be highly sensitive about interest rates. In most cases, digital currencies perform better when the Fed is either cutting rates or when it even hints of upcoming cuts.

Jasmy token has also stalled after Bitcoin found a strong barrier. Bitcoin struggled to find buyers above ,000 even as ETF inflows continued and as balances in exchanges tumbled to the lowest level in months.

Still, there are hopes that Bitcoin will stage a strong recovery since it has formed an inverse head and shoulders pattern. If this happens, other popular altcoins like Jasmy will rebound as well.

Finally, Jasmy price wavered as investors started to book profits. This is expected after an asset has staged a strong rally.

Jasmy price forecast

The daily chart reveals that the $JASMY token price has rebounded in the past few months. It recently crossed the crucial resistance level at .02756, its highest swing on March 4th. It has constantly remained above the 50-day and 25-day moving averages.

Further, the Awesome Oscillator has remained above the neutral point while the Relative Strength Index (RSI) has remained above the ascending trendline shown in red. The token is also forming a bullish flag pattern.

Therefore, the token’s outlook is bullish ahead of the Federal Reserve decision. If this happens more gains will be confirmed if Jasmy jumps above the year-to-date high of .045. This trend could see it jump to the next psychological point at .050.

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