The next two days are of great importance for the cryptocurrency market, especially the Bitcoin price. As the United States prepares to release key economic data on April 10 and 11, 2024, investors are closely watching how this could impact the cryptoasset landscape.
Economic data is in focus for Bitcoin price
On April 10, the March Consumer Price Index (CPI), a key inflation indicator, takes center stage. While inflation pressures are a major concern for investors globally, CPI data will shed light on current trends in the US economy. Stable or declining inflation rates can instill confidence in the market and potentially lead to increased investment in riskier assets such as Bitcoin.
Following the CPI announcement, the minutes of the Federal Open Market Committee (FOMC) meeting in March will be announced on April 11. These minutes provide valuable insight into the Fed’s thought processes and potential future actions regarding interest rates. Market expectations are trending towards stable interest rates, which could be a positive sign for cryptocurrencies. Fixed interest rates make borrowing easier and encourage investment in potentially risky assets.
Bitcoin halving: A price catalyst?
The upcoming Bitcoin halving, scheduled for later this month, also adds another layer of interest. This pre-programmed event cuts the block reward for miners in half, significantly reducing the number of new Bitcoins entering circulation. With less than 10 days until the halving, the anticipation is palpable. This reduction in supply, combined with potentially positive economic data, could create the perfect storm for Bitcoin price growth.
Market experts such as Markus Thielen, founder of 10x Research, believe that the recent price declines in Bitcoin may be a temporary nervousness before the CPI is announced. He emphasizes that the positive performance of the Nasdaq index, a technology-oriented stock market indicator, is a positive signal for Bitcoin and other risky assets. This suggests that Bitcoin’s decline may be short-lived and a recovery may be imminent.
What are the critical levels in BTC?
It is crucial to keep an eye on Bitcoin’s key price levels as investors navigate upcoming events. Currently, Bitcoin is hovering around $71,539. If economic news turns out to be positive for the US, Bitcoin could experience a significant increase as investors look for riskier ways to invest. However, key support levels such as $67,000 and the 50-day Exponential Moving Average (EMA) near $57,757 should be closely monitored. These levels can act as potential support zones if price action moves in an unexpected direction.
The coming days present a unique course of events for the cryptocurrency market. US economic data and the upcoming Bitcoin halving create a risky environment for Bitcoin and other crypto assets. Although some volatility is expected in the short term, positive economic indicators and a reduced supply of new Bitcoin could pave the way for long-term price growth. As with any investment, careful analysis and a well-defined strategy remain paramount for crypto investors in these crucial moments.
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