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Bitcoin Bulls Focus on Thursday: Current Economic Expectations in the US

  • Since the crypto winter of 2022, Bitcoin has experienced a year of ups and downs. The current price of Bitcoin is at $29,360, with a market capitalization of $570.5 billion.
  • Economists are predicting a monthly increase of 0.2% in inflation, similar to June. Annual inflation is expected to rise from 3% in June to 3.3%.
  • Depending on whether the tightening by the Fed has contributed to the decline in Bitcoin’s price, the slowing down or even ending of this tightening has been cited as one of the reasons for a minor comeback in the crypto.

The Bitcoin price continues to hold above $29,000; crucial data for the Bitcoin market will be announced on Thursday!

Anticipation for Thursday in the Bitcoin Market

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Since the crypto winter of 2022, Bitcoin has experienced a year of ups and downs. The current price of Bitcoin is at $29,360, with a market capitalization of $570.5 billion. BTC has seen an increase of over 1.5% in the last 24 hours, and it’s evident that significant work remains ahead for the BTC bulls.

Bitcoin bulls are looking for more positive news on the inflation front in the July Consumer Price Index report from the U.S. Bureau of Labor Statistics, which will be released on Thursday morning.

Economists are predicting a monthly increase of 0.2% in inflation, similar to June. Annual inflation is expected to rise from 3% in June to 3.3%. The headline inflation, which excludes seasonal factors and includes volatile food and energy costs, peaked at 9.1% in June 2022 and remained at 8.5% in July of last year.

The core Consumer Price Index (CPI), which excludes more volatile food and energy costs, is expected to remain at 0.2% in July, similar to June. The annual core CPI rate is expected to decrease from 4.8% to 4.7%. The core CPI had risen as high as 6.5% in March 2022 and was at 5.9% in July of the previous year.

In an effort to curb rapidly rising inflation in 2022, the Federal Reserve began a series of interest rate hikes, increasing the rate from 0% to 0.25% to the current range of 5.25% to 5.50% since the beginning of last year.

This historic tightening of monetary policy was partially responsible for the sharp drop in Bitcoin’s price, from around $69,000 in late 2021 to about $16,000 by the end of 2022. Bitcoin has risen 75% this year, but the recovery has been relatively modest compared to the magnitude of the previous decline, with Bitcoin currently trading at around $29,300, still about 58% below its all-time high.

Depending on whether the tightening by the Fed has contributed to the decline in Bitcoin’s price, the slowing down or even ending of this tightening has been cited as one of the reasons for a minor comeback in the crypto coin. A lower-than-expected CPI figure on Thursday could support this idea, while short-term interest rate traders have already priced in no rate hikes from the Fed this year. According to CME Group’s outlook for next year, traders expect the U.S. Federal Reserve to lower the interest rate in February.

Bitcoin Bulls Have Their Work Cut Out

The lack of relief in trading volumes since the start of U.S. trading after a weekend didn’t bode well for the bulls, and traders and experts were already predicting a lower outcome when the deadlock broke. According to CoinGlass data, daily total BTC long position liquidations exceeded $10.5 million, with the total value of cross-crypto long position liquidations reaching $60 million.

Bitcoin (BTC) saw a 0.90% increase on Monday. BTC closed the day at $29,754, unchanged from Sunday. The week started off with a bang as news of PayPal (PYPL) introducing PayPal USD (PYUSD), a dollar-backed stablecoin that can be converted to dollars at a 1:1 ratio on the Ethereum blockchain, shook the markets.

While the introduction of PYUSD may not have a direct impact on Bitcoin adoption, increasing adoption of cryptocurrencies and digital currencies can have a positive impact on prices. However, uncertainties surrounding the approval of spot BTC ETF applications by the SEC and the SEC’s intention to appeal the SEC v. Ripple decision remain key challenges.

Investors should consider crypto news. The SEC v. Ripple case, ETF updates, and news related to Binance and Coinbase (COIN) will move the market. However, U.S. legislative activities and SEC actions should also be taken into account. Laws that promote innovation while protecting consumers by creating a regulatory framework for cryptocurrencies should have a positive impact on both BTC and the overall market.

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Jocelyn Blake
Jocelyn Blakehttps://en.coinotag.com/
Jocelyn Blake is a 29-year-old writer with a particular interest in NFTs (Non-Fungible Tokens). With a love for exploring the latest trends in the cryptocurrency space, Jocelyn provides valuable insights on the world of NFTs.
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