Markets flip for Fed rate-hike pause into CPI: Five things to know in Bitcoin this week
Bitcoin spiked to a new August high into Sunday’s weekly close as market participants turned their attention to the next US inflation reports.
Five key points for Bitcoin traders this week highlight the mixed signals from recent US inflation data and the potential impact on Federal Reserve interest rates. Bitcoin surged to new August highs as traders focused on the upcoming US CPI and PPI reports on Wednesday and Thursday. The mixed signals from previous inflation data, combined with the uncertainty surrounding the US-Iran war, have made it challenging for Fed watchers to predict the Fed's policy direction.
The recent decline in US CPI and PPI figures, along with weaker-than-expected nonfarm payrolls numbers, have led markets to favor a continued pause in rate hikes for the upcoming September FOMC meeting. However, the recent ISM Manufacturing and Services data suggests a resilient US economy, despite concerns about potential "stagflation."
The US's intervention in the Japanese yen, following its weakening to its lowest levels since 1986, may have limited effects on the currency's trend. Crypto traders have identified potential breakout levels at $65,800, with bullish divergences in key technical indicators. Liquidity remains favorable around the current price level, with potential short-position liquidations at key support levels.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
