Bitcoin (BTC) Price Prediction: BTC Approaches $62,000 Amid Federal Reserve’s Hawkish Position and PPI Data; CPI On The Horizon

Bitcoin (BTC) traded at $61,649 earlier today, reflecting a 0.65% increase, influenced by the Federal Reserve’s hawkish stance on interest rates, which has affected its price outlook. Concerns surrounding inflation and the potential for higher interest rates have reduced investor sentiment towards cryptocurrencies. 

The recent US Producer Price Index (PPI) report meeting expectations has further reinforced the anticipation of sustained high interest rates. Market participants are closely monitoring the upcoming release of the Consumer Price Index (CPI) for additional insights. 

The Federal Reserve’s hawkish position on interest rates has a notable impact on Bitcoin’s price trajectory. Worries about inflation and the possible increased rates have subdued investor confidence in volatile assets such as cryptocurrencies. Moreover, the recent Producer Price Index (PPI) report, meeting expectations, has further solidified expectations of enduringly high interest rates. 

In April, the US PPI climbed by 2.2% year-over-year, meeting expectations. While the Core PPI, which excludes food and energy expenses, rose by 2.4%. These numbers offer further rationale for the Federal Reserve to uphold elevated rates for an extended duration. 

Furthermore, investors are paying close attention to remarks made by Federal Reserve officials. Cleveland Fed President Loretta Mester has indicated an inclination towards commencing asset purchase tapering. Nonetheless, the Fed seems to be exercising prudence in its approach to the economy, which could present challenges for Bitcoin and other cryptocurrencies. 

Today, there has been a significant increase in key economic data from the US. The CPI for April has increased by 0.3% month-over-month, a decrease from the previous 0.4%. In addition, Core Retail Sales went up by 0.2%, marking a considerable decline from the prior 1.1%.

Meanwhile, Bitcoin’s (BTC) price remains steady, currently trading at $62,458.57 marking a 1.12% increase in the last 24 hours.

ABOUT THE AUTHOR See More

Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.

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