Fed’s Powell Puts Pressure on Bitcoin at $65K Price Level

Bitcoin (BTC) experienced a brief drop in value, reaching around $61,000, on May 14 as the United States released inflation data. The Producer Price Index (PPI) for April was in line with expectations at 2.2%, marking the third consecutive monthly increase. Despite crypto markets being unaffected by the PPI miss, the overall outlook for risk assets remained unfavorable. This raised concerns about how the Federal Reserve might handle interest rates going forward. Jerome Powell, the Fed Chair, was scheduled to deliver a speech later in the day, which was eagerly awaited by market participants.

Bitcoin traders were uncertain as price movements remained range-bound. Liquidity in the order book was being replenished ahead of the release of macro data and Powell’s speech. Some prominent traders noted that several conditions had been met for BTC to experience an upside. These conditions included testing the 100-day exponential moving average as support and the bullish signal from the moving average convergence/divergence (MACD) indicator on daily timeframes. These traders believed that if BTC could surpass the $65,000 mark, the bullish scenario could unfold.

The focus shifted to the upcoming Consumer Price Index (CPI) release on May 15, which was anticipated to provide a catalyst for the market to take a clear direction. Market participants expected Powell’s speech to be carefully worded, leading to a muted market reaction. The CPI data would likely have a more significant impact on the market. Bitcoin’s price appeared to be preparing for a new upward move, indicating that traders were cautiously optimistic.

The market sentiment was influenced by the PPI data and Powell’s upcoming speech. Investors closely watched these indicators as they sought clues about the future direction of interest rates. Bitcoin experienced a period of volatility but remained range-bound, with traders awaiting clearer market signals. The release of the CPI data was expected to provide further insight into the market’s direction and potentially trigger a more significant price movement for Bitcoin. Traders remained cautiously optimistic about BTC’s potential for an upward move, but the $65,000 level remained a crucial point of resistance for the bullish scenario to unfold.

4 thoughts on “Fed’s Powell Puts Pressure on Bitcoin at $65K Price Level

  1. It’s all about patience and perseverance in the world of Bitcoin. Let’s stay positive and HODL on! 🙌💪

  2. Waiting for clearer market signals, but I believe in Bitcoin’s potential for an upward move!

  3. BTC’s price movement is so stagnant It needs a real catalyst to break out of this range-bound pattern.

  4. No matter the obstacles, Bitcoin always finds its way back up. I’m confident in its long-term potential!

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