Bitcoin price today climbed to $63,000 but bulls are struggling to close above $62,000. Investors who boldly bought the dips in previous downturns are now more cautious. This is due to the issues we have been discussing in detail for days. So, what does the latest data indicate?
Will Cryptocurrencies Rise?
Even if all issues were resolved, the Federal Reserve’s policy will continue to suppress the medium-term performance of cryptocurrencies. Inflation has stopped falling and the quarterly data did not meet expectations. Although the Fed keeps interest rates at peak, it has started targeting later dates each month for cuts. While reductions were expected to start in March at the beginning of 2024 with a 150 basis point cut, now the first cut is expected in September.
Fed officials’ recent statements were that any further rate cuts would occur if significant easing in employment was seen. However, the latest unemployment data also dampened these hopes. Today, the Unemployment Insurance Claims data arrived to help us see the current situation in the employment channel.
Expectations were at 215,000 while the latest data came in at 211,000. Today the data arrived at 212,000. Following the data that came below expectations, the Bitcoin price suddenly dropped below $62,000. The outlook remains negative for now, as the incoming data did not support the market.
