Cryptocurrency Market Sees Massive Price Fluctuations Following CPI Data and FOMC Report
The cryptocurrency market experienced significant price volatility following the release of the United States Consumer Price Index (CPI) data and the Federal Open Market Committee (FOMC) report on June 12, 2024. Amid this turbulence, on June 13, 2024, 10X Research issued a note stating, “Our recommendation remains unchanged: stick with the winner, i.e., Bitcoin, and avoid others like Ethereum.”
Markus Thielen’s Bold Endorsement of Bitcoin
Markus Thielen, the founder of 10X Research, made headlines with his strong endorsement of Bitcoin. In a client note, Thielen reiterated, “Our recommendation remains unchanged: stick with the winners (Bitcoin) and avoid others (such as Ethereum). Our previous analysis has shown that a lower CPI number tends to lift Bitcoin prices, and we anticipate this trend will continue.”
Federal Reserve Holds Interest Rates Steady
On June 12, 2024, the U.S. central bank maintained interest rates at 5.25%-5.5%, signaling only one rate cut this year instead of the three forecasted in March. This decision caused concern among investors, especially after inflation numbers came in lower than expected earlier in the day. Consequently, Bitcoin’s price fell, mirroring negative reactions across other markets to the Fed’s updated forecast.
Geoffrey Kendrick’s Bold Bitcoin Prediction
In addition to Thielen’s statement, Geoffrey Kendrick, head of forex and digital assets research at Standard Chartered, predicted on June 6, 2024, that Bitcoin would reach $150,000 by the end of 2024. Kendrick stated, “I am sticking with my end-2024 $150K and end-2025 $200K forecasts for BTC.”
Bitcoin Price Performance Analysis
Currently, the broader cryptocurrency market is struggling to gain momentum, with Bitcoin trading near the $68,000 level. Over the past 24 hours, Bitcoin experienced a price drop of over 1.6%. Looking at its performance over a longer period, Bitcoin has seen a 4.5% price drop in the last 7 days but still shows a 9% gain over the past month.
Technical Analysis Suggests Potential for Bitcoin Growth
Expert technical analysis indicates that Bitcoin remains bullish, with the potential to reach $72,000 in the coming days. However, the $70,000 level could present a significant hurdle. If Bitcoin breaches this level, achieving $72,000 could be within reach.
Not a financial advise.