Bitcoin, Ethereum, and other altcoins are set to witness an upsurge with breakouts in the next few days as we enter June. The crypto market defended the selloff from $8.2 billion in Bitcoin and Ethereum options expiry today.
Moreover, the US core PCE, the Federal Reserve’s preferred gauge to measure inflation, came in at 0.2% from the previous month in April after a 0.3% increase in March, the slowest increase so far in 2024 and below market expectations of a 0.3% rise. The headline PCE and core PCE inflation data came in line with expectations
Crypto options expiry and PCE inflation data were the major headwinds preventing Bitcoin price rally to new all-time highs, as reported earlier by CoinGape. Meanwhile, CPI inflation has also cooled to 3.6%
Bitcoin Price Start Rallying after PCE Inflation Data
The US dollar index (DXY) declined to 104.20 after the PCE inflation data pointed to an economic setting that could favor less restrictive monetary policy by the Federal Reserve.
Meanwhile, the US 10-year Treasury yield also dropped 0.042 to a low of 4.504%, easing from the four-week high of 4.61% touched recently as markets continued to assess the latest data for hints on the Federal Reserve’s policy outlook.
BTC price moves in opposite to DXY and Treasury yields. Thus, a drop in these macro factors always brings a much-needed rebound in the overall crypto market. In addition, the latest data hints at a more dovish approach to rate cuts by the Fed, while Fed swaps still indicate a single rate cut in 2024.
FED SWAPS STEADY AFTER DATA, SEE AT LEAST ONE 2024 RATE CUT
— *Walter Bloomberg (@DeItaone) May 31, 2024
Legendary trader Peter Brandt predicts an early cup-and-handle formation in Bitcoin price. The cup part has formed completely and the handle pattern has yet to form. Peter Brandt hints at a breakout upcoming in BTC price, with the confirmation happening after a downtrend breakout.
Also Read: Bitcoin Accumulations Worth $2.5 Bln Ignite Market Frenzy, Bull Run Ahead?
Altcoins to Rally Amid Consolidation in BTC Price
Ethereum price trading mostly sideways in the past 24 hours, with the price currently trading below $$3,800. The 24-hour low and high are $3,721 and $3,843, respectively. Furthermore, the trading volume has decreased by 40% in the last 24 hours, indicating a decline in interest among traders. But derivatives traders have ETH target price of $5000 by June-end.
XRP and Solana (SOL) prices are likely to witness upside moves in June amid a market-wide rally similar to a rally seen before Bitcoin halving. XRP price surpassed the $0.70 level in March and SOL price rose over $200.
Meme coins including SHIB, FLOKI, and BONK are set to rally as predicted accurately by CoinGape. Shiba Inu is likely to get a boost from the meme coins frenzy and Coinbase International Exchange listing SHIB perpetuals.
Also Read: LUNC & USTC Open Interest Soars Over 20%, Terra Luna Classic Price Set For 60% Rally
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
