Bitcoin Price Prediction: BTC Surge to $61.5K: Rally on Rate Cut Hopes, Trump Debate Win
Bitcoin (BTC) recently halted its losing streak and gained mild bullish traction around $61,500, reaching an intraday high of $62,150, suggesting chances of a bullish Bitcoin price prediction.
This upward trend is linked to softer US macroeconomic data, which increased speculation about an impending Federal Reserve rate-cutting cycle this year, prompting a short-covering rally in BTC prices.
Moreover, BTC gained further momentum as Donald Trump extended his lead over Joe Biden in betting markets during the June 27 presidential debate, boosting investor confidence.
However, gains in BTC may be short-lived as Bitcoin ETF outflows hit $1.3 billion, indicating reduced investor interest and potential downward pressure on prices.
US Economic Indicators and Fed Signals on Bitcoin
On the US front, softer macroeconomic data released on Thursday fueled expectations for the Federal Reserve to begin cutting interest rates this year. This speculation sparked a rally in Bitcoin prices as investors covered short positions.
Meanwhile, the US Dollar received support from comments by Fed Governor Michelle Bowman, who indicated that the Fed isn’t currently considering a rate cut due to ongoing inflation risks.
These contrasting signals from the Fed and economic data are influencing market sentiment, with Bitcoin experiencing upward pressure amid rate-cut speculation while the Dollar finds stability on cautious inflation concerns.
Key Data Highlights
- GDP Growth: First-quarter real GDP growth was revised up to a 1.4% annualized pace, the slowest since spring 2022. This indicates a notable slowdown from the previous quarter’s 3.4% rise.
- Durable Goods Orders: May showed a slight increase of 0.1%, contrasting with expectations of a 0.1% decline, following a revised 0.6% growth in April.
Initial claims for state unemployment benefits dropped 6,000 to a seasonally adjusted 233,000 for the week ended June 22, the US Labor Department said today. https://t.co/giKKC1TJYl
— RTÉ Business (@RTEbusiness) June 27, 2024
- Jobless Claims: Initial Jobless Claims dropped to 233,000 in late June, although the four-week average edged up to 236,000, the highest since last September.
- Pending Home Sales: Fell by 2.1% in May, hitting the lowest level on record since 2001, signalling challenges in the housing market.
These mixed economic indicators highlight ongoing uncertainties influencing market sentiment. Softer economic data from the US has increased expectations of Fed rate cuts, boosting Bitcoin prices as investors react to potential monetary policy changes favoring cryptocurrencies.
Bitcoin Price Rises Amid Presidential Debate Favoring Trump
Bitcoin Price Prediction
Bitcoin is forming an ascending triangle pattern, with significant resistance near the $62,500 level and support at the pivot point of $61,200, bolstered by an upward trendline.
The outlook remains bullish above $61,200. However, a break below this level could trigger a sharp selling trend.
