Following a favorable crypto price prediction Bitcoin and other cryptocurrencies gained ground on Wednesday as investors anticipated the publication of critical inflation statistics that might affect the Federal Reserve’s following interest rate decisions.
Bitcoin’s price has risen by less than 1% in the last 24 hours to $30,750, putting it near the top end of a trading range that has dominated for weeks. The largest digital asset recently had its greatest first six months of the year since 2019 but has since been stagnant and unable to recapture April’s high of $31,500 — a situation that traders hope will reverse soon with the proper stimulus.
“Bitcoin is gaining momentum,” said Alex Kuptsikevich, an analyst at FxPro. “Bitcoin is up at $30,800 and is approaching the upper boundary of its short-term range at $31,400. Only a break above this level will indicate that the market is ready for further gains, with potential targets near $35,500 by the end of the month.”
In our next crypto price prediction, the release of the U.S. consumer-price index for June, which is as likely to influence Bitcoin as the Dow Jones Industrial Average and S&P 500, will be the next key catalyst. Investors are widely following this crucial indicator of inflation at a time when expectations for the Federal Reserve’s next interest rate hikes are changing. While another rate rise is almost certainly priced in for July, the new inflation report may confirm expectations for what comes after that—whether the Fed has finished raising rates in its fight against inflation or whether further hikes are coming.
Since the Fed’s rate rise campaign, which began in March 2022 and has been the most aggressive tightening cycle in a generation, has been a big headwind for risk-sensitive assets such as equities and cryptos, the outlook for inflation and rates remains critical.
“We likely need more evidence of downward movement in core inflation before Bitcoin can take off,” said Antoni Trenchev, co-founder and managing partner at crypto lender Nexo. “Investors will be hoping Bitcoin’s price mirrored its ascent in the wake of the June 13 inflation report when it closed below $26,000 before launching itself to a 13-month high of $31,500.”
Beyond Bitcoin, Ether, the second-largest cryptocurrency, gained 1% to $1,890. Smaller cryptos or altcoins performed less well, with Cardano rising less than 1% and Polygon falling less than 1%. Memecoins performed similarly, with Dogecoin trading slightly above flat and Shiba Inu losing less than 1%.