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Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization, have stabilized hours ahead of another Consumer Price Index report from the U.S. Bureau of Labor Statistics.
The new Consumer Price Index report will be released at 8:30 a.m. ET. For now, the situation in the cryptocurrency market seems to be quite calm.
Bitcoin price is just above $62,000, up 0.6% compared to the same period yesterday. Ethereum price, which had fallen to around $2,900, has fallen 0.2% since Tuesday morning, according to data from CoinGecko.
Economists predict that the market will see another unexpectedly high consumer price index today. The CPI is one of the key indicators the Federal Reserve uses to determine whether to lower federal interest rates. However, analysts point out that gasoline prices are on the rise and prices in the service sector are gradually increasing.
Michael Pugliese, senior economist at Wells Fargo, said this is bad news, but not necessarily terrible news. Lucifer.
“The trajectory is still trending downward,” he said, “but it's a more gradual downward trend compared to our expectations going into 2024.”
The BLS released its Consumer Price Index report for March last month, showing that U.S. personal spending increased by 3.7%. BTC and ETH fell on news that US economic growth was slower than expected.
Bitcoin has fallen below $60,000 since the beginning of the month, but at one point reached $65,000, triggering the liquidation of hundreds of millions of dollars worth of derivatives positions along the way. Recently, a combination of macroeconomic factors such as Israel's war in Gaza and slowing growth in major economies such as the United States have caused pessimism in the crypto market.
But there's a bit of good news. Bitcoin billionaire Arthur Hayes said earlier this month that BTC's bottom has already arrived.
“We expect prices to bottom, round up, and slowly start rising,” he said in a recent blog post. However, he said he has no intention of adding any more Bitcoin to his bag.
“The recent spewing has provided a perfect opportunity to de-stake USDe and spend synthetic dollars on high-beta shitty coins,” Hayes said. “I am buying Solana and Dogecoin for momentum trading positions.”
