Why next Thursday is a crucial day for Bitcoin price

Bulls have been struggling for some time to regain the positive momentum of recent weeks and push the Bitcoin price to new highs.

This downward pressure on Bitcoin currently appears to be primarily macroeconomic in nature. Inflation in America is rising cautiously and for this reason the market expects fewer and fewer interest rate cuts in 2024.

While at the beginning of 2024 the first American interest rate cut was expected in March, it now appears that this will not take place until June or July.

Thursday will be crucial for the Bitcoin price

For now, all macroeconomic eyes are on next Thursday. Then it’s time again for the US Federal Reserve’s most popular inflation indicator. This of course affects the price index of personal consumption expenditures (Core PCE).

In December, this index rose by 0.2% and reached an annual value of 2.9%. An increase of 0.2% is also expected for January. Last month, the trend of disinflation (falling inflation) still seemed to be continuing.

That’s why it’s important that we get confirmation of this on Thursday.

This appeared to be particularly the case after it was revealed that the Consumer Price Index (CPI) was higher than expected last week and the Producer Price Index (PPI) also recorded a higher than expected reading.

If the Core PCE price index also produces a negative surprise next week, this could well have an impact on the Bitcoin price.

Problems for Bitcoin?

On the macroeconomic front, some storm clouds appear to be cautiously forming for Bitcoin. On the other hand, we shouldn’t overdo it either. It could also be that the market needs a breather after the gigantic rises of late.

Read Also:  Ethereum (ETH) could rise towards a new price record after correction

The German economy is currently also a cause for concern, with disappointing results, particularly in the industrial sector.

Some analysts believe Germany could be the first Western economy to fall into recession since the pandemic. Would the European Central Bank be the first to put on the brakes and change course?

For more information, see Premium

In the premium environment of Crypto Insiders, we are monitoring this development closely. Here we discuss the most important macroeconomic developments and the possible impact on the Bitcoin price on a daily basis.

In our premium environment you will find a friendly community of analysts and traders of all levels. Here you can talk to experts and beginners about the latest market trends and get first access to in-depth analyses.

We also organize weekly live streams and webinars for traders who want to learn more. We would like to invite you to start a 30-day trial in our premium environment for just €1.

Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts’ own insights and experiences. These therefore serve exclusively educational purposes.

Recent Articles

Related News

Leave A Reply

Please enter your comment!
Please enter your name here