Bitcoin Price Prediction: BTC Dips to $60,000; Strong US Dollar and Fed Uncertainty

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Arslan Butt
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Arslan Butt is an experienced webinar speaker, market analyst, and content writer specializing in crypto, forex, and commodities. He provides expert insights, trading strategies, and in-depth analysis...

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Bitcoin Price Prediction
Bitcoin Price Prediction

Bitcoin (BTC) recently slipped below the $60,000 level, reaching an intraday low of $59,544. Despite a surge in new Bitcoin addresses and dovish comments from Federal Reserve Chair Jerome Powell, the cryptocurrency couldn’t halt its decline.

This downward trend is influenced by stronger-than-expected US labor market data, which reduces the likelihood of imminent rate cuts and increases the strength of the US dollar.

US Dollar Strength and Fed Uncertainty: Bitcoin’s Path Forward

The US dollar is gaining momentum, fueled by better-than-expected US labor market data, particularly the unexpected surge in JOLTs job openings from 7.919 million in April to 8.140 million in May.

This has reduced investor bets on a September Fed rate cut, now pricing in a higher chance of a November or December reduction.

Key Points:

  • Strong US dollar: Positive labor market data boosts the dollar’s value.
  • Fed uncertainty: Markets await clarity on rate cut decisions as Fed Chair Jerome Powell emphasizes the need for sustained progress towards the 2% inflation target.
  • JOLTs job openings surge: Unexpected 2.7% increase in job openings signals a strengthening labor market, potentially leading to higher wages and consumer spending.
  • Impact on Bitcoin: Stronger dollar and Fed uncertainty may weigh on Bitcoin’s price, with investors leaning towards traditional assets in the short term.

Looking Ahead:

Bitcoin’s trajectory depends on the Fed’s actions and the broader economic landscape. If the US economy continues to show strength, the Fed may delay rate cuts, potentially pushing Bitcoin prices lower.

However, any signs of economic weakness or a shift in Fed policy could quickly change the outlook for Bitcoin. Investors should closely monitor economic data releases and Fed statements for clues about the future direction of Bitcoin.

Ethereum ETFs Set for July 8th Launch: Will Bitcoin Feel the Heat?

The upcoming launch of spot Ethereum exchange-traded funds (ETFs) in the United States on July 8th is poised to shake up the crypto market. Analysts predict Ethereum (ETH) to outperform Bitcoin (BTC) as these ETFs attract substantial inflows, potentially adding 0.75-1% to Ethereum’s circulating supply within five months.

Key Points:

  • Ethereum ETFs launch: Spot ETH ETFs will become available in the US on July 8th.
  • Ethereum’s potential surge: Analysts at K33 Research expect Ethereum to benefit from steady inflows and outperform Bitcoin.
  • Bitcoin facing challenges: Bitcoin’s price could be negatively impacted by the Ethereum ETF launch and the pressure from $8.5 billion in BTC repayments to Mt. Gox creditors.
  • ETH/BTC ratio reversal: The ETH/BTC ratio has already reversed its year-long decline against Bitcoin, currently standing at 0.055.

While the launch of Ethereum ETFs is expected to boost Ethereum’s price, it could also create headwinds for Bitcoin. Investors may shift their focus towards Ethereum, leading to increased selling pressure on Bitcoin.

Additionally, the large BTC repayments to Mt. Gox creditors could further exacerbate the downward pressure on Bitcoin’s price.

Bitcoin Price Prediction

Bitcoin (BTC/USD) is currently priced at $60,830, reflecting a decrease of 1.94%. The four-hour chart shows significant levels starting with a pivot point at $61,700. Immediate resistance lies at $63,030, with further barriers at $63,880 and $64,735.

Conversely, support begins at $60,695, with additional levels at $59,900 and $59,070.

Bitcoin Price Prediction - Source: Tradingview
Bitcoin Price Prediction – Source: Tradingview

Technical indicators suggest caution; the RSI stands at 37, indicating approaching oversold conditions. The 50 EMA is at $62,060, currently above the price, hinting at potential resistance.

In conclusion, while BTC remains bullish above $60,000, a breach below this threshold could potentially trigger a sharp downward trend.

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

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