Simply put
- Bitcoin is currently priced at $111,336, reflecting a daily drop of 1.8% and a weekly decline of 5.4% as investors await the upcoming PCE inflation data.
- In the forecasts, 61% of users believe BTC will dip to $105,000 before hitting a new high, with selling pressures expected between $115,000 and $119,000.
- The likelihood of a Fed rate cut stands at 83.4% for the next meeting, although rising inflation could lead to a more aggressive approach and exert further pressure on crypto markets.
Bitcoin is hovering around the $111,000 mark as anticipation builds for new US inflation data, which is crucial for determining if the Federal Open Market Committee will consider a rate cut again in 2025.
Analysts have varying opinions on how major cryptocurrencies are faring right now.
According to Coingecko, Bitcoin’s recent drop of 1.8% positions it at $111,336, and it has also seen a decline of 5.4% in the past week.
There’s a sense of uncertainty among users regarding Bitcoin prices. The parent company of Decrypt, Dastan, expressed skepticism about reaching $125,000 soon. As of Thursday morning, 61% of users expect it to decrease to $105,000 before setting a new record.
“Tomorrow’s PCE print matters a lot since it serves as the Fed’s inflation measure. Traders should keep an eye on any deviations from the projected year-on-year rate of 2.7-2.9%,” noted Decrypt. “Higher-than-expected inflation could push for tighter Fed policies, usually stressing the crypto market.”
On the flip side, a lower inflation reading might open the door for another rate cut, which could shift Bitcoin and other cryptocurrencies back to positive trends, according to Kenneth.
Data from the Bureau of Labor Statistics indicates that core personal consumption expenditure for this range is anticipated to hit around 2.99%, per estimates from the Cleveland Federal Reserve Bank.
Currently, investors believe there’s an 83.4% chance for the Fed to implement a rate cut, according to insights from the FOMC Meeting next month. This marks an increase in odds from 8.1% to 16.6%, roughly doubling within a week.
“It’s curious that while the market is bracing for a significant figure, digital assets are facing downward pressure,” commented John Glover, the chief investment officer at Bitcoin lender LEDN.
Recent sentiment shifts and price declines in the crypto landscape have triggered substantial liquidations just last week.
“This is evident from the weak long positions,” he mentioned. “Yet, there seems to be substantial selling pressure between $115,000 and $119,000, which could result in profit-taking as some believe the current bull run is ending.”
Glover further noted that PCE prints might end up being a “non-event,” unless the actual numbers substantially diverge from expectations.
Dom Harz, co-founder of Bitcoin DeFi Project Bob, expressed that if you take a step back, the Bitcoin outlook still seems encouraging.
“By the third quarter of 2025, Bitcoin’s stability above $110,000 won’t just be a price point; it could represent a solidifying trust from institutions in digital assets,” he added.
