Bitcoin Price Analysis and Market Update: April 26, 2024 – US Inflation Report Impact on BTC
Bitcoin Price Chops Either Side of $64,000 Following Latest US Inflation Report – Here’s What You Need To Know
The Bitcoin price has been fluctuating around the $64,000 level in response to the latest US inflation data report. The Core PCE index rose 0.3% MoM in March, in line with market expectations, indicating an annualized inflation rate of around 3.6%, well above the Fed’s 2% target.
Economists are concerned about stubbornly high housing and utility inflation, which could keep price pressures elevated for some time. This is likely to prompt the Fed to keep interest rates higher for longer, given the strong data reports in recent weeks.
The macroeconomic backdrop, with markets pricing in stickier inflation and a more cautious Fed, is seen as a near-term headwind for Bitcoin. Historically, Bitcoin has performed better in an environment of falling US yields and a weakening US dollar.
While there are signs of a slowing US economy, such as weakness in economic activity and disappointing GDP numbers, until this translates into lower inflation, the Fed is likely to remain cautious about rate cuts, which could continue to weigh on Bitcoin.
In the short term, Bitcoin is at risk of slipping below its current range lows around $60,000, potentially leading to a drop towards support at $53,000. However, some analysts point to strength in stablecoin growth as a positive indicator for the crypto market.
Looking ahead, most experts remain confident in Bitcoin’s long-term bull thesis. The recent halving event, combined with increased institutional adoption and investment through ETFs, is expected to drive the price to new all-time highs in the coming quarters.
Despite the possibility of a post-halving correction, the long-term outlook for Bitcoin remains positive. Factors such as global currency debasement, increased adoption of decentralized payment technology, and ongoing developments in the crypto space are all expected to support Bitcoin’s growth towards $100,000 in the near future.
It’s important to note that crypto investments are high-risk, and this article is for informational purposes only and does not constitute investment advice. Investors should be aware of the potential risks involved in trading cryptocurrencies.
