Bitcoin’s value increased on Monday morning amidst anticipation of two upcoming U.S. inflation reports. These data points could influence the Federal Reserve’s decisions on potential interest rate adjustments 2024.
On Monday, Bitcoin prices went up because traders were eagerly awaiting US inflation data, which could affect the Federal Reserve’s decision about whether to change interest rates in 2024.
The leading digital asset with the largest market cap is still above $62,000. Its value has gone up nearly 3% in the last 24 hours, hitting $62,815 at 5:02 a.m. ET, according to The Block’s Price Page.
Recent signs about the U.S. economy show that it is slowing down a bit compared to how strong it was in 2023. The U.S. job report for April showed slower growth than expected.
This could put pressure on the Federal Reserve to think about lowering interest rates in order to avoid a major economic downturn.
Investors are eagerly waiting for proof that inflation will continue and want to know how likely, when, and how much rates will be changed this year.
This week, U.S. inflation data is coming out, starting with the Producer Price Index (PPI) on Tuesday and then the Consumer Price Index (CPI) on Wednesday. This will give us a chance to learn more.
Before these inflation numbers come out, the CME’s FedWatch tool says there is a 24.6% chance that rates will be lowered at the Federal Open Market Committee (FOMC) meeting in July and a 48.6% chance that rates will be lowered at the meeting in September.
Traders in interest rates think that rates will stay the same at the meeting in June 96.5% of the time.
Analysts at QCP Capital said, “It looks like the markets will continue to price in rate cuts until the Fed either clearly rules out rate cuts or hints at rate hikes.”
The market is likely to stay optimistic for a while longer because of these predictions.
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