The recent surge in US Core Inflation data has caused a sharp decline in Bitcoin prices, dropping below $59,000. This unexpected rise in inflation to 2.4%, higher than the market’s forecast of 2.3%, has raised concerns about a potential Federal Reserve’s hawkish stance. The uncertainty surrounding interest rate cuts has dampened market sentiment, leading to a broader crypto market selloff. Additionally, regulatory pressures targeting the cryptocurrency sector, such as the SEC’s lawsuit and Department of Justice’s charges for market manipulation, have intensified investor anxiety. SEC Chair Gary Gensler’s negative remarks about the crypto industry being filled with “fraudsters” have further fueled the negative sentiment around BTC.
The recent US Consumer Price Index (CPI) data showed a monthly inflation rate of 0.2%, consistent with previous months, but the yearly rate is the lowest since February 2021. On the other hand, the Core CPI, excluding volatile food and energy prices, rose to 3.3% year-over-year. Following the CPI release, Bitcoin’s price fell by more than 2%, briefly dipping below $59,000 within the past 24 hours, contributing to a broader selloff in the cryptocurrency market. The unexpected rise in inflation and potential Federal Reserve’s hawkish stance could lead to increased market volatility for Bitcoin, potentially pushing its price further down.
Recent US regulatory actions, including charges for market manipulation and negative comments from SEC Chair Gary Gensler, have added downward pressure on Bitcoin’s price. Market sentiment has turned negative, with analysts suggesting that regulatory scrutiny may keep Bitcoin’s price stagnant until after the US elections in November. The increased legal pressure and harsh regulatory remarks could limit any significant price recovery in the short term. Analysts predict that Bitcoin will remain range-bound until there is improved regulatory clarity, and the short-term outlook for Bitcoin may face continued selling pressure.
Bitcoin (BTC/USD) trades at around $60,150, gaining 0.82% on the day after hitting a low of $59,530. The price remains below the 50-day Exponential Moving Average (EMA) at $62,080, indicating strong resistance. The recent bounce suggests potential short-term bullish momentum, but it remains capped by the $60,740 resistance level. Immediate support is seen at $59,540, with deeper levels at $58,880 and $58,350. The Relative Strength Index (RSI) has recovered to 40, indicating neutral momentum but still below the key 50 mark. Bitcoin’s short-term outlook is cautiously bearish below $61,240, but a move above $61,240 could change sentiment to bullish.
Pepe Unchained ($PEPU) continues to attract attention in the meme coin market, raising $18.4 million in its presale so far. With just a few thousand dollars remaining to hit its $18.6 million target, investors are eagerly watching. The token’s presale price currently stands at $0.00995 per $PEPU, with a potential price increase expected soon. Popular crypto analyst Jacob Crypto Bury has highlighted $PEPU’s strong presale performance, secure contract audits, and high staking APY of 499%, positioning it as a potential top performer in the meme coin space. With investor sentiment remaining strong, considering adding $PEPU to your portfolio before the next price increase might be worth considering.
