Bitcoin Price Prediction: BTC Soars Toward $70K on Fed Rate Cut Hopes, NFP Report Focused
Bitcoin (BTC), the leading cryptocurrency, fell from $70,230 during a bearish correction and completed a 50% Fibonacci retracement at around $68,789. This shift is driven by US economic data, increasing expectations of a Federal Reserve rate cut in September.
Anticipation of lower rates has weakened the US dollar, supporting BTC’s bullish stance. Traders are now looking ahead to key US macroeconomic reports this week, particularly the Nonfarm Payrolls (NFP) report on Friday.
The broad-based US dollar is under pressure due to signs of softening inflation and slowing economic growth, heightening expectations of a Federal Reserve rate cut this year.
This sentiment is supported by the unexpected drop in the ISM Manufacturing PMI to 48.7 in May, down from 49.2 in April and below the forecast of 49.6. This marks the US manufacturing sector’s second consecutive month of contraction and the 18th in the last 19 months.
BREAKING: Manufacturing sector continues to contract
As ISM Manufacturing PMI comes in at 48.7, missing the consensus of 49.8
In the last 19 months, this metric has crossed 50 only once – March 2024 pic.twitter.com/VwExy0IUHc
— Game of Trades (@GameofTrades_) June 3, 2024
Traders are increasingly betting on a Fed rate reduction, with the CME FedWatch Tool indicating a roughly 60% chance of a 25 basis point decrease in September. This has prompted the US dollar to fall, supporting Bitcoin (BTC) prices.
On the data front, the US Bureau of Economic Analysis (BEA) reported that the Personal Consumption Expenditures (PCE) Price Index held steady at 2.7%, with the core gauge climbing to 2.8% year-on-year, as expected.
The personal consumption expenditures (PCE) price index increased 2.7% from a year earlier in April, little
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