BTC Nears $62,000 Amid Fed’s Aggressive Stance and PPI Report; CPI ahead

Last updated: May 15, 2024 03:13 EDT | 4 minutes of reading

Bitcoin Price Prediction

On Wednesday, Bitcoin traded at $61,949, up 0.65%, as the Federal Reserve’s aggressive stance on interest rates impacted its price outlook. Concerns about inflation and higher interest rates have dampened investor sentiment toward cryptocurrencies.

The recent US Producer Price Index (PPI) report, which met expectations, reinforced the anticipation of high and prolonged interest rates. The next Consumer Price Index (CPI) release will be closely watched for more information.

The Fed’s aggressive stance and the impact of US PPI on BTC price

The Federal Reserve’s aggressive stance on interest rates is significantly affecting Bitcoin’s price outlook. Concerns about inflation and expectations of higher interest rates have dampened investor sentiment toward risky assets such as cryptocurrencies. The recent US Producer Price Index (PPI) Reportwhich met expectations, further reinforced the anticipation of high and prolonged interest rates.

In April, the US Producer Price Index (PPI) increased 2.2% year over year, in line with expectations. The basic PPI, excluding food and energy costs, increased by 2.4%. These numbers provide further justification for the Federal Reserve to maintain higher rates over an extended period.

Investors are closely monitoring statements from Federal Reserve officials. Cleveland Fed President Loretta Mester has expressed a desire to begin phasing out asset purchases. However, the Fed appears to be taking a cautious approach to the economy, which could pose challenges for Bitcoin and other cryptocurrencies.

• Impact of PPI: The US PPI increased 2.2% annually in April, with core PPI rising 2.4%.
• Federal Reserve: The aggressive stance on interest rates is dampening investor sentiment.
• Bitcoin Perspective: Expectations of higher interest rates negatively impact Bitcoin and other cryptocurrencies.

The Federal Reserve’s aggressive stance and US PPI data reinforced expectations of higher interest rates, dampening investor sentiment towards Bitcoin and other cryptocurrencies.

Bitcoin is always ahead of CPI, retail sales and manufacturing insights

On Wednesday, key economic data from the United States revealed notable changes. April’s Core Consumer Price Index (CPI) increased 0.3% month over month, down from 0.4% previously. Meanwhile, core retail sales increased 0.2%, a significant drop from the previous 1.1%.

The overall CPI remained stable at 0.4% month over month and showed a slight decline year over year from 3.5% to 3.4%. The Empire State Manufacturing Index improved to -9.9, up from -14.3, indicating a less severe contraction in industrial activity.

Retail sales grew 0.4% in April, slowing from the previous month’s 0.7% increase. These data collectively suggest a mixed economic outlook, with inflationary pressures persisting alongside fluctuations in consumer and manufacturing activities.

El Salvador mines 474 Bitcoins using volcanic geothermal energy

El Salvador has attracted significant attention for its innovative and environmentally friendly approach to Bitcoin mining. Under the leadership of President Nayib Bukele, the country is using volcanic geothermal energy to mine Bitcoin, setting a sustainable example for other nations. This method not only increases El Salvador’s Bitcoin reserves but also promotes responsible mining practices.

Since September 2021, El Salvador mined approximately 474 bitcoins, using only 1.5 megawatts of the 102 megawatts generated by its geothermal plant. This initiative is aligned with the country’s national energy and environmental policies, emphasizing the commitment to sustainability in the cryptocurrency sector.

Despite initial skepticism, El Salvador’s approach has gained global recognition. The country addresses environmental concerns associated with traditional mining by integrating renewable energy with Bitcoin mining. This demonstrates the potential for cooperation between cryptocurrency miners and sustainable energy projects around the world.

• Sustainable Mining: El Salvador uses volcanic geothermal energy to mine Bitcoin, setting a sustainable example.
• Increased reserves: Since September 2021, the country has mined 474 bitcoins using minimal energy.
• Global Recognition: El Salvador’s method shows the potential of merging cryptocurrency mining with renewable energy.

Eco-friendly Bitcoin mining in El Salvador using volcanic energy exemplifies sustainability and increases BTC reserves. This innovative approach could positively influence Bitcoin prices through greater adoption and environmental awareness.

Bitcoin Price Prediction

With a high Bitcoin Price Prediction, Bitcoin (BTC/USD) is trading at US$61,949, up 0.65%. On the 4-hour chart, the pivot point (green line) is at $61,547. Immediate resistance levels are at $63,164, $64,271 and $65,504. Immediate support levels are at $60,275, $59,218 and $58,237.

Technical indicators suggest a favorable environment for an uptrend. The Relative Strength Index (RSI) is at 50, indicating balanced momentum. The 50-day exponential moving average (EMA) stands at $61,626, providing additional support to the current price.

Bitcoin Price Prediction – Source: Tradingview

An ascending trend line is strengthening BitcoinThe price is around the $61,630 level. On the upside, the next resistance is at $63,165, extended by a descending trendline. Overall, the 50 EMA and RSI favor a buying trend.

Conclusion: High above US$61,547; a break below this level could trigger a sharp selling trend.

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

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