Bitcoin Price Prediction
Federal Reserve officials expressed growing concern about inflation during their most recent meeting, with many members hesitant to move forward with interest rate reductions.
Since the FOMC decided to keep the short-term borrowing rate in the 5.25%-5.5% range, a 23-year high, it has significant implications for the economy, as well as the Bitcoin price prediction. Let’s deleve into it.
Fed Officials Express Concerns About Inflation, Unlikely to Cut Interest Rates Soon
Federal Reserve officials expressed growing concern about inflation during their most recent meeting, with many members hesitant to move forward with interest rate reductions.
Meeting Details: Minutes from the April 30-May 1 Federal Open Market Committee (FOMC) meeting revealed worries about the persistence of inflation. Despite some easing over the past year, recent data showed significant increases in both goods and services prices.
Fed’s Target: The Fed aims for a 2% inflation rate, but current indicators show prices increasing well above this target. This persistent inflation has led some policymakers to consider further tightening of monetary policy if necessary.
We have posted the minutes from the #FOMC meeting held April 30 – May 1, 2024: https://t.co/cenMn4Jxn0
— Federal Reserve (@federalreserve) May 22, 2024
The FOMC decided to keep the short-term borrowing rate in the 5.25%-5.5% range, a 23-year high. The decision was based on data indicating continued solid economic growth.
Since then, there have been minor improvements, with the April consumer price index showing a 3.4% annual inflation rate, slightly lower than March.
However, consumer sentiment surveys indicate rising concerns about inflation.
Risks and Concerns
Fed officials noted several upside risks to inflation, including geopolitical events and the impact on low-income consumers. Some attributed early-year inflation increases to seasonal factors, while others warned against dismissing these broad-based moves.
Concerns were also raised about consumers turning to riskier financing methods, like increased credit card use and buy-now-pay-later services.
Despite optimism about growth prospects, officials expect some moderation this year. They believe inflation will eventually return to the 2% target but are uncertain about the timeline and the impact of high interest rates.
Market Expectations
Since the meeting, Fed officials have maintained a cautious tone. Fed Governor Waller emphasized the need for “several months” of positive data before considering rate cuts.
Chair Jerome Powell echoed the need for patience, suggesting the Fed will wait for restrictive policies to curb inflation. Futures pricing indicates a 60% chance of the first rate cut in September, with lower expectations for a second cut in December.
Impact on Bitcoin: Rising interest rates could decrease Bitcoin’s appeal as an inflation hedge, potentially leading to price volatility.
Bitcoin Price Prediction
Bitcoin (BTC/USD) is currently trading at $69,553, showing a modest increase of 0.63% over the last 24 hours. The pivot point, marked by the green line at $69,219, serves as a crucial level, indicating the primary trend direction.
Above this pivot point, the immediate resistance levels to watch are $72,030, $73,734, and $75,480. These levels represent potential barriers where selling pressure could increase, challenging further upward movement.
On the downside, support levels are identified at $67,549, $65,949, and $63,901. These levels could provide a cushion against declines, offering potential entry points for buyers.
Bitcoin Price Prediction – Source: Treadingview
The presence of an upward trendline further bolsters this bullish outlook. However, a break below the pivot point of $69,675 could trigger a sharp selling trend.
In conclusion, Bitcoin price prediction remains bullish at $69,675, but a breach below this level could lead to significant downside pressure.
Invest in the Future of Gaming with 5thScape’s Cutting-Edge VR Platform
5thScape is leading the virtual reality (VR) revolution, seamlessly blending digital and physical worlds. This innovative platform offers immersive gaming experiences using the latest VR technology and the creativity of its community.
By holding 5SCAPE tokens, users gain exclusive access to premium VR content, enhancing their gaming adventures and engaging with a burgeoning digital economy.
Innovative Cryptocurrency Use in VR: 5thScape uses 5SCAPE Coin for secure, transparent transactions within its VR ecosystem, redefining user interaction and investment in virtual worlds.
Expanding Gaming Horizons: 5thScape provides a diverse range of 3D VR games, from adventure to mystery, alongside state-of-the-art VR headsets and ergonomic gaming chairs, promising an unrivaled gaming experience.
Empowering the Gaming Community: 5thScape is more than just a platform; it’s a movement towards fostering a vibrant, inclusive community where gamers can explore, interact, and grow together in immersive virtual landscapes.
We’ve reached $6.0M , VR is a Revolution and We $5Scape as a Community are the Trendsetters
Thanks to YOU, our awesome community!
Get ready for next-level gaming adventures and VR Innovations as we embark on this exciting journey together! Let’s make magic happen… pic.twitter.com/RvUmUyU8ws
— 5th Scape (@5th_scape) May 21, 2024
Presale Now Live
The presale has raised $6,086,033, nearing its target of $6,250,000. With the listing price set at $0.00327, reflecting a substantial increase from the presale price of $0.00248, the potential for growth and returns is significant.
Whether you’re a seasoned gamer or new to VR, 5thScape has something for everyone. Don’t miss the chance to be part of the next big leap in gaming technology.
Get 5thScape Here
The post Bitcoin Price Prediction: BTC Near $70,000 Amid FOMC Meeting Minutes Revealing Inflation Concerns appeared first on Cryptonews.
