Bitcoin Price Hits $61k With CPI Data Below Expectations – New BTC All-Time High Next?

As a seasoned researcher with over two decades of experience in financial markets under my belt, I must admit that the latest CPI data has sent shockwaves through both traditional and crypto markets alike. The unexpectedly low inflation rate gives the Federal Reserve an unprecedented opportunity to lower interest rates aggressively, a move that could potentially catapult Bitcoin to new all-time highs.


For July, the projected Consumer Price Index was surpassed, thereby signaling the Federal Reserve’s potential approval to lower interest rates in September.

The headline CPI inflation came in at 2.9%, below the expected 3.0%. Meanwhile, core CPI came in at 3.2%, in line with the market expectations. 

 

🔔 Breaking News: The annual inflation rate in the U.S. for July has climbed by 2.9%, slightly less than anticipated 3.0%. Similarly, the core inflation rate rose 3.2% year-over-year, in line with predictions for a 3.2% increase. This data suggests that the Federal Reserve may lower interest rates in September.

— Jesse Cohen (@JesseCohenInv) August 14, 2024

 

In the wake of the CPI release, the value of Bitcoin peaked at an impressive $61,500, but then experienced a slight dip. Nevertheless, industry analysts anticipate a robust upward trend in the near future.

There’s a growing interest in newly-emerged meme cryptocurrencies like Pepe Unchained, as investors prepare for the upcoming market surge (bull run).

US CPI Beats Market Expectations – Will Bitcoin Price Hit New All-Time High?

Market analysts find the recent underestimated Consumer Price Index (CPI) inflation to be highly favorable for the cryptocurrency market, particularly given its immediate succession to Tuesday’s optimistic Producer Price Index (PPI).

Even before this week’s bullish inflation data, a September rate cut was almost a certainty. The weak July jobs report and high unemployment rate sparked recessionary concerns, making it necessary for the Fed to intervene with quantitative easing. 

Contrarily, today’s strong Consumer Price Index (CPI) report significantly boosts the likelihood of a 0.5 percentage point interest rate reduction, as opposed to the previously anticipated 0.25 percentage point cut.

Currently, the CME FedWatch indicates a 40% probability of a 0.5 percentage point reduction in interest rates in September. Furthermore, it anticipates that the central bank will lower its target rate by 1 percentage point by the year’s end.

Notably, the market was initially pricing in only a 25 bps rate cut in 2024. 

Translating this financial jargon into simpler terms: This change in predictions about the market might greatly benefit the cryptocurrency industry. The value of Bitcoin tends to align with the overall liquidity of the world, and since this year’s quantitative easing is expected to increase liquidity, Bitcoin’s price could rise accordingly.

As a result, financial specialists anticipate that Bitcoin (BTC) will reach a brand-new record peak. To illustrate, Michael van de Poppe from MN Trading envisions a robust uptrend if it surpasses the $61.5k barrier as a resistance level.

 

Today is a big day, it’s CPI day.#Bitcoin remains constant and today is deciding the trend.If we break through $61-61.5K, then the path toward a new all-time high is open.

— Michaël van de Poppe (@CryptoMichNL) August 14, 2024

 

Today, the price of gold reached an all-time high due to investors anticipating upcoming interest rate reductions by making their moves ahead of time.

Bitcoin (BTC) is shaping up as a “bullish megaphone” pattern on the larger time scales. If it breaks through this structure, it’s likely that Bitcoin could reach prices with six digits in this current bull market.

New Meme Coins Such As Pepe Unchained Are Also In High Demand

As a researcher studying the cryptocurrency market, I firmly believe that the surge in Bitcoin’s price towards a fresh record high is highly probable to ignite the upcoming crypto bull market. This anticipated boom could lead to significant jumps in the value of alternative cryptocurrencies (altcoins).

As an analyst, I’ve been closely observing the market trends and it appears that savvy investors are preparing for a similar scenario, amassing newly emerging meme coins with significant growth potential. This strategy stems from the fact that these relatively unknown, low-capitalization meme coins transformed numerous modest investors into millionaires during the bull run we experienced earlier this year.

In just a few short weeks, the innovative meme cryptocurrency known as Pepe Unchained (PEPU) managed to gather approximately $9 million during its pre-sale phase.

Various well-known cryptocurrency resources like CoinMarketCap, Techopedia, Binance Square, and Bitcoin.com have highlighted the impressive pre-sale results of PEPU.

Yet, the strong demand for it doesn’t come as a shock. Memecoins with a frog theme often attract a significant following, and Pepe Unchained stands out due to its unique Layer-2 chain, setting it apart from ordinary, utilitarian tokens without real value.

As a researcher exploring decentralized finance options, I’ve found that PEPU stands out among Ethereum meme coins due to its unique combination of low trading fees and enticing staking rewards for token holders. Unlike many other coins in this space, these features are noteworthy advantages that PEPU can claim.

It’s no surprise that experienced investors anticipate a significant influx of retail investments into this novel meme coin, with some predicting potential gains as high as 50 times their initial investment.

Visit Pepe Unchained Presale

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2024-08-14 19:14