Bitcoin price is at $69,300 as of writing, with altcoins continuing in green. However, we have yet to see a price breakout. From the all-time high in the first quarter to today, Bitcoin’s price has been stuck in the current range. Will we see a real breakout this week? What awaits investors?
This Week in Cryptocurrencies
We discussed significant developments on Sunday. If a real breakout is to occur, we need a trigger. The event that could shake or elevate the cryptocurrency markets this week will come on Friday. Although we start the week calmly in terms of macroeconomic data, we might end it with increased intensity.
Bitcoin price has reacted strongly to employment data throughout the year. Let’s recall what happened after abnormal Non-Farm Payroll data. Initial jobless claims in the US will come on June 6, followed by the unemployment rate the next day. Additionally, wage growth and Non-Farm Payroll data will also be released.
All these are closely watched by investors as a result of the Fed’s statements, “If there is abnormal easing in employment, we will also ease.” If employment weakens, it means the Fed is succeeding, and economic tightening is yielding results. Considering that PCE data also came in positively, the market will welcome the data within expectations.
Fed and Comments
Later this month, the Federal Open Market Committee will announce its interest rate decision. These data will also affect the potential signals for a rate cut in September. The Kobeissi Letter said the following about all this;
“This is the last week of employment data before the June Fed meeting starts.”
Mosaic Asset wrote the following in the latest issue of its regular bulletin, The Market Mosaic;
“Even if the Fed manages to make a rate cut this year, the central bank seems forced to keep rates high for longer.”
They also wrote that the reduction in the rate is not a terrible thing for the stock market. Powell has remained cautious in his recent statements. Data on the inflation front and PMI data were normal. If employment and wage growth data also come in normal, he may not need to adopt a very hawkish stance. If this expectation prevails, we might see new upward attempts for BTC on Friday.
