Bitcoin narrowly missed a fresh assault on the $69,000 mark at the June 13 Wall Street open as markets showed caution in the face of the latest U.S. inflation data.
Data from Cointelegraph Markets Pro and TradingView indicated that Bitcoin briefly surged to $68,433 on Bitstamp before retreating.
This short-lived spike coincided with the release of the U.S. Producer Price Index (PPI) for May, which came in lower than expected, signaling a slowdown in inflation.
While this could be seen as positive for risk assets and cryptocurrencies, Bitcoin’s reaction was muted compared to the previous day’s data releases.
Jobless claims, which also beat expectations, similarly failed to boost market sentiment.
Commenting on the situation, popular trader Skew suggested that market sentiment could shift dramatically during the U.S. session.
“Market is confused & chicken here imo,” he tweeted.
“Next few hours will be interesting.”
Skew also observed that despite the PPI-related dip, the U.S. dollar did not show significant volatility.
The U.S. Dollar Index (DXY) was at 104.79 at the time, having briefly dipped to 104.64.
“It’s what we usually see,” fellow trader Dann Crypto Trades remarked on his X account, reflecting on the BTC price reaction.
“Looking ahead, trading firm QCP Capital expressed optimism about U.S. financial policy for the rest of 2024.
“FED’s dot plot remains ambiguous, making it challenging to predict whether officials prefer one or two rate cuts this year,” it stated in its latest Telegram update.
“However, we anticipate a rate cut in September, with the FED likely adopting a wait-and-see approach for subsequent meetings in November and December.”
QCP also highlighted the potential approval of spot Ether exchange-traded funds (ETFs) as a bullish factor amidst the expected macro shifts from Fed rate cuts.
“We maintain a structurally bullish outlook for the remainder of the year, driven by the anticipated ETH ETF S-1 approval and potential rate cuts in September and year-end,” it confirmed.
Thus, while the immediate market reaction was subdued, the broader outlook for Bitcoin and Ether remains optimistic amid expected policy shifts and regulatory developments.
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