Bitcoin’s price took a significant dive, falling to as low as $57,000 following the release of the US Consumer Price Index (CPI) data. This triggered a broader market decline that also saw major cryptocurrencies like Ethereum, Solana, and Cardano suffer losses.
Market analysts like Alex Kuptsikevich of FxPro predict that Bitcoin’s price could fall to $55,000 in the near term. However, they believe a recovery is possible, potentially leading to a price rally of up to $66,000, especially if data supports the Fed’s easing of monetary policy.
Bitcoin’s sell-off continued despite positive reactions from the NASDAQ and S&P 500 to the CPI data, reflecting the crypto market’s increasing sensitivity to US economic indicators as investors often prefer stability over riskier assets in uncertain times.
However, one by one, FED members are making statements in favor of interest rate cuts. The market currently expects a 25 basis point rate cut in September, but there are those who think a surprise 50 basis point cut could be made.
*This is not investment advice.