Bitcoin
rose Tuesday after the release of key U.S. inflation data, but remains vulnerable after more than a week of regulatory pressures. The interest-rate decision Wednesday from the Federal Reserve is the next major catalyst for cryptos.
The price of Bitcoin has risen more than 1% over the past 24 hours to near $26,300, remaining in the range between $26,000 and $27,000 that has dominated for much of the period since the largest digital asset hit a 10-month high above $30,000 in April. Bitcoin edged higher, to almost $26,300 from $26,200, immediately after the release of the U.S. consumer-price index (CPI) for May.
Bitcoin tumbled to as low as $25,500 over the past week, but has since steadied in the face of U.S. regulatory fears, following the Securities and Exchange Commission charging exchanges Binance and
Coinbase Global
(ticker: COIN) with violating a slew of U.S. laws.
“The cryptoverse is stuck in limbo as regulatory fears run wild,” said Edward Moya, an analyst at broker Oanda.
Bitcoin has two days of macroeconomic catalysts to weather—just like the stock market. After Tuesday’s CPI print, a decision Wednesday decision on interest rates from the Federal Reserve is set to move digital assets just like the
Dow Jones Industrial Average
and
S&P 500.
The Fed has raised rates dramatically since March 2022 to fight inflation, which has been a driving force behind declines in digital assets as well as stocks. Much of Bitcoin’s big rally this year—a rise of some two-thirds—has come amid expectations that rate-rises will soon end and eventually reverse. Investors are bracing for the Fed to hit the pause button on rates on Wednesday.
Tuesday’s CPI data may be helping calm traders’ nerves. The inflation data revealed that on an annual pace consumer prices notched an 11th straight month of declines—a victory for the Fed.
Nevertheless, Bitcoin also remains vulnerable from a technical perspective with the Fed decision looming, near key levels that could accelerate a selloff.
“Bitcoin continues to grind sideways-to-lower but remains above key support near $25,200,” said Katie Stockton, managing partner at technical research firm Fairlead Strategies. “A breakdown below $25,200 would turn our attention to nearby secondary support from the 200-day moving average, near $23,600. Long-term momentum has yet to recover meaningfully.”
Beyond Bitcoin,
Ether
—the second-largest crypto—was flat at $1,750. Smaller cryptos or altcoins were more mixed, with
Cardano
down 1% and
Polygon
up 1%. Memecoins were buoyant, with
Dogecoin
and
Shiba Inu
gaining 1% each.
Write to Jack Denton at [email protected]
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