The cryptocurrency world woke up to some turbulence today, driven by speculation surrounding potential changes in interest rates. This speculation was fueled by a call from Senators Elizabeth Warren, Jacky Rosen, and John Hickenlooper, urging the Federal Reserve to consider cutting interest rates before its upcoming decision.
Bitcoin took a hit, dropping by 4% in the last 24 hours to $66,700, while Ethereum also saw a decline, falling to $3,520.
Dive deeper to find out what analysts are saying and where the price might be headed next.
Key Week Ahead for Crypto
According to well-known crypto analyst Michaël van de Poppe, this week holds significant importance, with all eyes on the release of the Consumer Price Index (CPI) data and the forthcoming interest rate decisions by the Federal Open Market Committee (FOMC) scheduled for June 12.
There’s growing anxiety surrounding the Federal Reserve’s stance on interest rates, which has led to increased selling pressure in the cryptocurrency market. Earlier expectations of two interest rate cuts by the end of 2024 have been cast into doubt, with even a September adjustment appearing unlikely.
Uncertainties within the United States and underwhelming economic data have steered investors away from riskier assets like Bitcoin, resulting in a downward push on its value.
A Look Back at History
Looking back, Bitcoin and other cryptocurrencies have tended to undergo corrections before significant events, typically bouncing back afterward. This trend suggests a cautious approach among traders and investors, who prefer to wait for relevant economic data before making significant moves.
Next BTC Buying Opportunity
Bitcoin’s recent price struggles come after failing to break through the $71,000 mark. Analyst Michaël van de Poppe has identified critical price levels and areas of interest for stakeholders, indicating that Bitcoin is likely to test the support range between $64,000 and $65,000.
According to Van de Poppe, this support range is crucial as it could provide a strong foundation for Bitcoin’s price to stabilize before attempting another climb. However, if the price falls below this support, attention will shift to a significant demand zone between $54,000 and $56,000.
With the FOMC meeting and the release of new CPI data on the horizon, market participants are bracing themselves for potential market shifts. You should, too!
Also Read : Will Clemente Says Bitcoin’s Consolidation Period Remains Uncertain; Draws Parallels With 2020 Price Action