Bitcoin Price Prediction: Bitcoin and Ethereum Await FOMC Meeting and Fed Rate Announcement for Price Predictions
Bitcoin, the most prominent cryptocurrency, is currently under close scrutiny as traders and investors eagerly await the upcoming Federal Open Market Committee (FOMC) meeting and the Federal Reserve’s interest rate announcement. These events hold significant potential to impact the cryptocurrency market, including Bitcoin and Ethereum.
The decisions and statements made by the FOMC regarding monetary policy and interest rates can have a profound effect on the direction and volatility of both Bitcoin and Ethereum. As market participants anticipate these crucial updates, the focus remains on predicting the future price movements and potential breakouts for these leading cryptocurrencies.
Bitcoin Price Seesawing Following CPI Release, Investors Awaiting Fed’s Rate Hike Decision
After the release of the May Consumer Price Index (CPI), Bitcoin experienced a momentary boost as inflation showed signs of decline. The leading cryptocurrency, with the highest market capitalization, briefly traded at $26,008, representing a minor decrease of less than 0.50% within the hour following the announcement by the US Bureau of Labor Statistics.
The CPI revealed a 4% increase, which was slightly better than the expected 4.1% and lower than April’s 4.9% figure. While both the US economy and Bitcoin showed resilience on that day, any potential hiccups caused by the upcoming interest rate decision or an impending US recession could favor cryptocurrencies.
Many believe that the Federal Reserve will maintain its pause on interest rate hikes this month, with experts and economists suggesting that the pause may extend throughout the entirety of 2023. As the 2024 US presidential election campaign approaches, the central bank’s focus is expected to shift from combating inflation to preventing a recession. The current interest rates are considered appropriate for achieving this objective, but any increase in rates could have significant implications.
Binance US Requests Rejection of SEC’s Asset Freeze, Citing Operational Challenges
Binance US, a US-based cryptocurrency exchange, has requested a federal judge to deny the US Securities and Exchange Commission’s (SEC) request to freeze its assets. The defense lawyers argued in a court document that the company is unable to pay its staff, vendors, or operate its trading platform.
The SEC recently sought court approval to freeze cryptocurrency assets held by Binance.US, Binance Holdings Ltd., and Changpeng Zhao, the founder and CEO of Binance, citing concerns about the security of user funds. In response, one of Binance US’s banking partners has informed the exchange that it will no longer hold its assets starting from June 14. The partner has also suspended all transactions on Binance US’s account pending the court’s decision on the SEC’s request.
As a result, Binance US has informed its customers about the suspension of dollar deposits and withdrawals, advising them to withdraw their holdings in US dollars by June 13 as the exchange transitions to a cryptocurrency-only trading platform.
New Study Reveals Bitcoin Network Hash Rate and Energy Consumption
A recent mining study titled “The Signal & The Nonce,” conducted by Coin Metrics researcher Karim Helmy, introduces a novel method for analyzing the hash power of the Bitcoin network. The study utilizes nonce patterns to uncover the market share held by major application-specific integrated circuit (ASIC) mining rigs that contribute to the network’s operations, presenting an innovative approach.
The research also examines Bitcoin’s energy consumption and compares it to the electricity consumption indices developed by the Centre for Alternative Finance at Cambridge University and Dichotomist. According to Coin Metrics, Bitcoin’s energy consumption is lower than the indices published by these two organizations.
The researchers claim that this new methodology offers several advantages over the existing body of research related to Bitcoin mining and energy consumption.
Bitcoin Price Prediction and Technical Analysis
Bitcoin is currently facing resistance at the $26,250 level while finding support around $25,500, which will play a crucial role in determining its future direction. The 50-day Exponential Moving Average (EMA) at $25,800 acts as a support level, but a downward triangle pattern suggests a bearish outlook.
If the support level of $25,500 is broken, it could increase selling pressure, potentially driving the price towards further support levels at $24,940, $24,710, or even $24,385.
Traders are closely monitoring the upcoming FOMC meeting and Fed Rate announcement as these events have the potential to impact Bitcoin’s price significantly.