Bitcoin Rises As New Data Raises Hopes For Early Fed Rate Cuts

May 24, 2024

Bitcoin price recorded a slight upside move on Friday as the top crypto’s chart pattern strengths. BTC price saw a breakout pattern earlier this week and the bulls are again gaining upside momentum after a retest of the trendline. Meanwhile, a new inflation outlook data has raised of Fed rate cuts starting September.

The University of Michigan Consumer Sentiment and 5-Year Inflation Expectations data was positive for the U.S. economy. The consumer sentiment for the US came in higher at 69.1 in May. Whereas, inflation expectations for the year-ahead declined to 3.3% from 3.5% and five-year inflation outlook was steady at 3%, unchanged from April and below an earlier reading of 3.1%.

As a result, the US dollar index (DXY) dropped to a low of 104.64, fell from the high dollar index of 105. The US 10-year Treasury yield also fell to 4.467%. As Bitcoin moves opposite to DXY and Treasury yields, the pressure has eased and CME FedFatch Tool indicates a 45% odds of 25 bps rate cuts in September.

Bitcoin Price Sets Strong Upside Moves

BTC price jumped 3% in the past 24 hours, with the price currently trading at $69,000. The 24-hour low and high are $66,356 and $69,220, respectively. Furthermore, the trading volume has increased by 7% in the last 24 hours, indicating a rise in interest among traders.

Coinglass data indicates $22 million in Bitcoin short positions were liquidated in the last 24 hours, with the most liquidation happening in the last 12 hours. Over 75K traders were liquidated in the past 24 hours, with the largest single order liquidation happened on Binance as some traded ETHUSDC valued at $12.41 million.

Buying is recorded in futures and options, with total BTC Futures open interest rising across crypto exchanges. The CME Futures OI increased to $10.46 billion.

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