Bitcoin Treads Water Near $68,500

Bitcoin may look like it is hardly moving, but that could be deceptive. There are a few factors that could indicate an upcoming bull trend.

Written by: Timothy St. John • Tuesday, May 28, 2024 • 2 min read

• Last updated: Tuesday, May 28, 2024

Top cryptocurrency token Bitcoin (BTC) seems frozen around $68.5K right now, fluctuating between $68K and $69K for the last few days.

Bitcoin is currently priced at $68,391 (BTC/USD), having fallen just 0.69% from the previous day. Its trade volume is high, though, up 62% from the day before.

This could indicate the Bitcoin is done being frozen in place. The coin has stayed right where it is currently at for a couple of days, although it did briefly surge above $70,000 on Monday. That move, like the high trade volume, tells us that Bitcoin is getting ready to spike again. This could be an ideal time to invest in the token before the next bull trend hits.

Factors to Watch for Bitcoin Movement

There are a few economic factors we are looking out for this week that will help move Bitcoin in one direction or another. The first of those is the FOMC remarks coming later this week. Several FOMC members will comment to the public, and they will cover topics like inflation and interest rate cuts, which directly affect how Bitcoin moves. If their sentiment on inflation and Fed policy remains hawkish, then Bitcoin is likely to stagnate or even reverse direction.

We are also looking at the CB Consumer Confidence report, which gives investors a very powerful indicator of where inflation is headed. That data is coming later this week as well as the HPI (house price index). That is a weaker inflation indicator, but it can still have an effect on major crypto tokens like Bitcoin.

The economic situation is such that inflation is a very hot topic and has stayed high for longer than most people expected. If any inflation news comes out, the market is going to shift accordingly. The crypto market is somewhat fragile right now, and it would not take much to move it quickly with a little news on inflation.

Our expectation is that any inflation news right now will be negative, but we may see some slightly positive indicators from several of these data points. The recent SEC approval for spot ether ETFs will also work in Bitcoin’s favor, helping the market to see cryptocurrency in a more positive light.

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ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.