BITCOIN
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Bitcoin’s value hit $61,000 on July 3, influenced by a gloomy update on the United States’ inflation expectations.
Fed’s Powell Kicks the Can on Rate Cut
Data from TradingView indicated a gradual resurgence in Bitcoin’s price after a 2% decline at the day’s end.
This decline compounded earlier losses, setting a local low at $60,561 on Bitstamp and reversing the gains accrued over the weekend.
Sentiment soured further following a speech by Jerome Powell, the U.S. Federal Reserve Chair, at an event in Portugal regarding the economy and monetary policy.
Powell emphasized the necessity for more robust evidence to consider reducing interest rates—a decision keenly anticipated by proponents of cryptocurrencies and other risk-sensitive assets.
“We need to be sure that the figures we are seeing are a genuine reflection of the underlying inflation trends,” he stated, according to reports by Reuters and other news outlets.
Market expectations for an interest rate reduction at the September meeting of the Fed’s Federal Open Market Committee (FOMC) slightly declined, with probabilities sitting at about 65%, according to the CME Group’s FedWatch Tool.
“The Fed will maintain its approach of deciding on a meeting-by-meeting basis,” commented The Kobeissi Letter on X. “While the market anticipates two rate cuts this year, the Fed signals only one. The upcoming months will be pivotal.”
Bitcoin Hashrate Drop May Spark “Healthy Overdue Correction”
As Bitcoin’s price slid back to a well-known price bracket, market watchers expressed their exasperation.
Trader Skew highlighted manipulative tactics on exchanges, such as order “spoofing,” which artificially created resistance levels repeatedly.
He also noted on the day that spot demand on Binance, the world’s largest cryptocurrency exchange, hovered around $60,000 “and lower.”
Additional observations pointed out that Bitcoin had closed the most recent “gap” in CME futures, a result of the prior weekend’s positive movement.
For Charles Edwards, founder of Capriole Investments, the recent price trends in Bitcoin were alarming.
He argued that the market has yet to adjust to the current phase of miner capitulation—a situation recently detailed.
“The market hasn’t yet accounted for the severe disruptions on-chain,” he cautioned his X followers. “It may not be necessary, as time can heal, but Bitcoin is not known for its patience. We might stay lucky, with prices stabilizing between $60-70K for a couple of months, or we may face a significant correction soon.”
