Cryptocurrency Bitcoin Soars to Peak of $124K on Rate Cut Expectations
In the financial landscape of the United States, the cooling inflation data has played a significant role in the recent surge of Bitcoin's price. According to data from Bloomberg, Bitcoin reached an unprecedented high of $124,347 on [specific date].
The Federal Reserve's monetary policy is also contributing to this trend. The CME FedWatch Tool indicates a 93.7% probability of the Federal Reserve easing interest rates. This rise in Bitcoin's price is attributed to growing expectations of an interest rate cut by the Federal Reserve in September.
However, the situation is not without its uncertainties. Core inflation, which excludes food and energy prices, rose to 3.1% year-on-year in the latest data, leaving some uncertainty. Conversely, the overall Consumer Price Index (CPI) slowed to 2.7% year-on-year in the same period.
Min Jung, an analyst at Presto Research, predicts that Bitcoin's price will remain sensitive to developments related to the September rate decision. Despite the lack of explicit mention of the founder of Presto Research or their predictions regarding Bitcoin development in response to a potential Federal Reserve interest rate cut in September 2021, Min Jung's statement provides insight into the market's expectations.
After reaching the all-time high, Bitcoin stabilized at $123,868, indicating a steady market response to the economic indicators. The current financial climate, influenced by inflation data and the prospect of a Federal Reserve interest rate cut, continues to shape the Bitcoin market's trajectory.
