BTC
“Bitcoin Unable to Sustain CPI Surge as $70,000 Target Fades”
According to data from Cointelegraph Markets Pro and TradingView, the trajectory of BTC price reversed after the daily close, with BTC/USD briefly touching $70,000.
Following this, a subsequent downturn saw new lows of $66,983 on Bitstamp, with Bitcoin down around 1.3% on the day at the time of writing.
The excitement stemmed from lower-than-expected readings from the Consumer Price Index (CPI), while the Federal Reserve’s meeting on interest rates maintained predictably restrictive policies.
However, Chair Jerome Powell’s commentary appeared to unsettle risk assets, as he reiterated that interest rate cuts were not under discussion for the foreseeable future.
“We think policy is restrictive. And we think, ultimately, that if you just set policy at a restrictive level, eventually you will see real weakening in the economy,” Powell stated during a press conference after the event, as reported by CNBC and others.
“So, the thought has always been that since we raised rates to this extent, we’ve been anticipating cuts at some point.”
Market expectations of a rate cut at the Fed’s September meeting decreased by approximately 10%, according to data from CME Group’s FedWatch Tool.
“Today’s FOMC was definitely more hawkish than expected,” financial commentator Tedtalksmacro commented on X (formerly Twitter).
“However, the market had already factored in this scenario, so the real takeaway from today is that disinflation persists (via CPI data). This is evident from the movement of stocks… Crypto will follow suit.”
Analysis: BTC Price Stalls, $69,000 Holds as Key Support
Material Indicators, a trading resource, analyzed BTC price dynamics, highlighting the influence of Bitcoin whales on the day’s price volatility.
According to a post on X, Bitcoin’s retracement after the morning pump is seen as further evidence of ongoing “Killer Whale Games.” Material Indicators noted shifts in order book liquidity, driven by external factors like U.S. macro data. The post emphasized the importance of $69,000 as a key support level.
