Bitcoin rose 0.65% to trade at $61,949 on Wednesday as the Federal Reserve's hawkish stance on interest rates affected the price outlook. Concerns about inflation and rising interest rates have dampened investor sentiment towards cryptocurrencies.
The recent US Producer Price Index (PPI) report matched expectations, reinforcing expectations that high interest rates will continue for a long time. The upcoming release of the Consumer Price Index (CPI) is expected to provide further insights.
Impact of Fed’s hawkish stance and US PPI on BTC price
The Fed's hawkish stance on interest rates is having a major impact on Bitcoin's price outlook. Concerns about inflation and expectations for higher interest rates have dampened investor sentiment towards risk assets such as cryptocurrencies. The recent US Producer Price Index (PPI) report matched expectations, further reinforcing expectations for high interest rates for an extended period.
The U.S. producer price index (PPI) rose 2.2% year-on-year in April, in line with expectations. Core PPI, which excludes food and energy costs, rose 2.4%. These numbers provide further justification for the Federal Reserve to keep interest rates high for an extended period of time.
Investors are closely monitoring statements from Federal Reserve officials. Cleveland Fed President Loretta Mester has signaled her intention to begin tapering asset purchases. However, the Fed appears to be taking a cautious approach to the economy, which could pose challenges for Bitcoin and other cryptocurrencies.
- Impact on PPI: US PPI rose 2.2% annually in April, and core PPI rose 2.4%.
- Federal Reserve: The hawkish stance on interest rates has worsened investor sentiment.
- Bitcoin outlook: Rising interest rate expectations have a negative impact on Bitcoin and other cryptocurrencies.
The Fed's hawkish stance and US PPI data have strengthened expectations for interest rate increases and dampened investor sentiment towards Bitcoin and other cryptocurrencies.
Bitcoin remains steady, outperforming CPI, retail sales, and manufacturing insights
On Wednesday, major economic indicators in the United States revealed notable changes. The core consumer price index (CPI) in April rose 0.3% from the previous month, down from the previous month's 0.4% rise. Meanwhile, core retail sales increased by 0.2%, down significantly from 1.1% previously.
Overall CPI was flat at 0.4% month-over-month, but fell slightly year-on-year from 3.5% to 3.4%. The Empire State Manufacturing Business Index improved from -14.3 to -9.9, indicating that the contraction in manufacturing activity is not as severe.
Retail sales rose 0.4% in April, slowing from the previous month's 0.7% rise. Collectively, these data suggest a mixed economic outlook, with volatile consumer and manufacturing activity as well as sustained inflationary pressures.
El Salvador mines 474 Bitcoins using volcanic geothermal energy
El Salvador is gaining a lot of attention for its innovative and environmentally friendly approach to Bitcoin mining. Under the leadership of President Nayib Boukre, the country uses volcanic geothermal energy to mine Bitcoin, setting a sustainable example for other countries. This method not only increases El Salvador's Bitcoin reserves, but also promotes responsible mining practices.
El Salvador has mined almost 474 Bitcoins in the past three years, increasing national crypto holdings https://t.co/8dYn1i4fZc pic.twitter.com/VXAXOLGtis
— Reuters (@Reuters) May 15, 2024
Since September 2021, El Salvador has mined approximately 474 Bitcoins using just 1.5 MW of the 102 MW generated by its geothermal power plants. This initiative is in line with the country's energy and environmental policies and highlights its commitment to sustainability in the crypto space.
Although initially met with skepticism, El Salvador's approach has gained worldwide recognition. The country is tackling the environmental issues associated with traditional mining by integrating renewable energy and Bitcoin mining. This shows the potential for cooperation between crypto miners and sustainable energy projects around the world.
- Sustainable mining: El Salvador uses volcanic geothermal energy to mine Bitcoin, setting a sustainable example.
- Increase in reserves: Since September 2021, the country has mined 474 Bitcoins using minimal energy.
- Worldwide reputation: El Salvador's approach shows the potential for merging crypto mining and renewable energy.
Eco-friendly Bitcoin mining in El Salvador using volcanic energy is demonstrating sustainability and increasing BTC reserves. This innovative approach could positively impact the price of Bitcoin through increased adoption and environmental awareness.
Bitcoin price prediction
Bullish predictions for Bitcoin price have Bitcoin (BTC/USD) trading at $61,949, up 0.65%. On the 4-hour chart, the pivot point (green line) is $61,547. Immediate resistance levels are $63,164, $64,271, and $65,504. Immediate support levels are $60,275, $59,218, and $58,237.
Technical indicators suggest a supportive environment for a bullish trend. The Relative Strength Index (RSI) is 50, indicating balanced momentum. The 50-day exponential moving average (EMA) is $61,626, providing further support for the current price.
The uptrend line is consolidating Bitcoin price near the $61,630 level. On the upside, the next resistance is at $63,165 and is extended by the downtrend line. Overall, the 50 EMA and RSI both support the buying trend.
Conclusion: Bullish if above $61,547. A break below this level could trigger a sharp selling trend.
Secure early profits with 99Bitcoins presale
99Bitcoins, a leader in digital education, is transforming the way users learn about cryptocurrencies through its “earn while you learn” platform. Participants can enhance their knowledge while earning 99BTC tokens and effectively grow both their expertise and investment portfolio.
The current 99BTC token pre-sale offers an attractive entry price for early participants and is attracting the attention of savvy investors.
Exclusive early access to 99Bitcoins
This presale is a rare opportunity for early investors to secure 99BTC tokens at a competitive price of $0.00103 each. These tokens are not just a reward mechanism, they also provide access to premium content and additional benefits within the community.
Act fast – limited time offer
To date, $ has been raised in the pre-sale1,263,034, is on track to reach its goal of $2,036,443. With just over 3 days left until the next pricing step, this is a pivotal moment to invest in $99BTC and start benefiting from instant staking opportunities.
Disclaimer: Cryptocurrency is a high-risk asset class. This article is for informational purposes only and does not constitute investment advice. You could lose all your capital.
