Bitcoin managed to avoid a new attack on the $69,000 mark as the markets engaged in a game of “chicken” with the latest United States inflation data at the opening of Wall Street on June 13.
BTC/USD 1-hour chart. Source: TradingView
Despite the U.S. Producer Price Index (PPI) for May coming in lower than expected, signaling a slowdown in inflation, Bitcoin briefly spiked to $68,433 on Bitstamp before retracting.
U.S. PPI 1-month % change. Source: Bureau of Labor Statistics
While this news should have been positive for risk assets and cryptocurrencies, Bitcoin’s reaction to the PPI report was relatively subdued compared to the previous day’s data releases. Even jobless claims surpassing forecasts failed to ignite market sentiment.
In response, well-known trader Skew suggested that the situation could change drastically during the U.S. trading session, describing the market as confused and hesitant.
U.S. dollar index (DXY) 1-hour chart. Source: TradingView
Fellow trader Dann Crypto Trades echoed similar sentiments, noting the typical market behavior in response to the BTC price movement.
Looking ahead, trading firm QCP Capital expressed optimism about the future of Bitcoin and Ether, believing that the U.S. financial policy for the rest of 2024 will be more favorable.
Fed target rate probabilities for September meeting. Source: CME Group
QCP highlighted the potential approval of spot Ether exchange-traded funds (ETFs) as a positive catalyst for the market, alongside the likelihood of rate cuts later in the year.
Despite their bullish outlook, it is important to remember that this article does not offer investment advice. All investment decisions involve risks, and readers should conduct their own research before making any decisions.