Hassan Maishera
TL;DR
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Bitcoin momentarily dipped below $67k on Tuesday but has since recovered and is now trading close to $67,500 per coin.
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Traders are already focusing on today’s FOMC and CPI report.
Traders Prepare for Today’s FOMC and CPI Report as BTC Underperforms
Bitcoin, the world’s leading cryptocurrency by market cap, has continued its poor start to the week. It lost less than 1% of its value over the last 24 hours and is now trading at $67,404 per coin.
On Tuesday, BTC’s price dropped to the $66k region, resulting in over $250 million liquidation for long traders in the market.
Despite the price volatility, traders are now focusing on the FOMC and CPI report later today.
K33 Research pointed out that Bitcoin could see a volatile session today as the leading cryptocurrency has been highly responsive to economic data recently. K33 analysts added that,
"The stage is set for a frantic macro-Wednesday, with both May CPI data and the FED’s interest rate decision poised to move the market."
Traders will also keep an eye on the Federal Open Market Committee (FOMC) members' interest rate outlook (dot plot) to know how many rate cuts the Fed projects this year.
"The FOMC dot plot, alongside forward guidance during Jerome Powell’s press conference, is likely to be the most material price movers, as BTC has resumed its attentiveness to the market's interest rate expectations," K33 analysts added.
With Bitcoin underperforming, the total crypto market cap has dropped by 1% and now stands at $2.45 trillion.
