• Inflation in the United States declined to 2.7% (below expectations of 2.8%), supporting cryptocurrency markets as Bitcoin's price rose to $118,000-$119,000 (+1.1%) while Ethereum gained 3.2%
• Trading volumes and inflows to ETFs have increased, enhancing technical support, making the $115,000-$118,000 range for Bitcoin a key area
• Energy prices decreased by 1.1% month-on-month (with gasoline down by -2.2%) while food costs remained unchanged, supporting the case for the Federal Reserve to cut interest rates
Macroeconomic factors
• The Federal Reserve is likely to soften its current stance of 5.25%, as forecasts suggest Bitcoin could reach $200,000 by 2025 if interest rates are cut
• The GENIUS Act imposes a 100% reserve requirement to back stablecoins, adding regulatory clarity
• Institutional participation is increasing in readiness for monetary easing, which enhances price stability
Trading strategies
• Monitor the support range for Bitcoin between $115,000 and $118,000 for potential buying opportunities amidst bullish momentum
• The stronger performance of Ethereum indicates broader strength in the altcoin market worth exploring
• Consider using a dollar-cost averaging trading strategy during pullbacks while markets absorb the Federal Reserve's changing guidance
• Prepare for volatility as the interest rate decision in September approaches, with the investor community reflecting cautious optimism#Binance #EarnFreeCrypto2024 #Write2Earn #bitcoin #TrendingTopic $ETH $ETH $BNB
