Will Bitcoin, ETH, SOL, XRP, SHIB Prices Set to Rally in June as CPI & PCE Inflation Cools

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As a researcher with a background in economics and finance, I have closely monitored the crypto market and its correlation with macroeconomic indicators. Based on my analysis of the recent events, I believe that Bitcoin, Ethereum, and other altcoins are poised for an upswing as we enter June.

As a crypto market analyst, I believe that Bitcoin, Ethereum, and other altcoins are primed for an uptrend with potential breakouts in the coming days as we transition into June. The recent selloff in the market was effectively checked following the $8.2 billion expiry of options in Bitcoin and Ethereum today.

Additionally, the Federal Reserve’s preferred measure of inflation in the US, the core PCE, rose by 0.2% in April compared to the previous month, marking the smallest increase this year. This was below the anticipated 0.3% increase and followed a 0.3% uptick in March. The headline PCE inflation and the core PCE figure both matched market predictions.

The expiration of crypto options and the release of PCE inflation figures acted as significant obstacles, preventing Bitcoin from reaching new record-high prices, according to previous reports by CoinGape. On a positive note, the Consumer Price Index (CPI) inflation rate has now decreased to 3.6%.

Bitcoin Price Start Rallying after PCE Inflation Data

As a financial analyst, I would rephrase it as follows: The US dollar index (DXY) dipped to a level of 104.20 following the release of the PCE inflation data. This data suggested an economic climate that might prompt the Federal Reserve to adopt a more lenient monetary policy approach.

At the same time, the US 10-year Treasury yield retreated by 0.042 percentage points to reach a minimum of 4.504%, having receded from its four-week peak of 4.61% set previously as investors evaluated fresh data for insights regarding the Federal Reserve’s future monetary policy direction.

As a researcher studying the cryptocurrency market, I’ve observed that Bitcoin’s price tends to move inversely to the DXY index and U.S. Treasury yields. In simpler terms, when these macroeconomic factors decrease, the crypto market often experiences a welcome rebound. Furthermore, recent data suggests that the Federal Reserve may adopt a more lenient stance on interest rate reductions. However, Fed swap rates currently indicate only one anticipated rate cut in 2024.

FED SWAPS STEADY AFTER DATA, SEE AT LEAST ONE 2024 RATE CUT

— *Walter Bloomberg (@DeItaone) May 31, 2024

Famed trader Peter Brandt anticipates an initial appearance of a cup-and-handle formation in Bitcoin’s price chart. The bottom portion of this pattern, referred to as the “cup,” has already taken shape. The “handle” part is yet to materialize. Brandt suggests that a breakout in Bitcoin’s price is imminent, with a definitive confirmation following a decline in the trend.

Will Bitcoin, ETH, SOL, XRP, SHIB Prices Set to Rally in June as CPI & PCE Inflation Cools

Altcoins to Rally Amid Consolidation in BTC Price

In the previous 24 hours, Ethereum’s price trend has mainly hovered around the same level. At present, it is trading under the $3,800 mark. The lowest and highest points in the last day were $3,721 and $3,843 respectively. A significant drop of 40% has occurred in the trading volume over the same timeframe, signaling a decrease in trader activity. However, derivatives traders have set their sights on a potential Ethereum price surge to hit $5000 by July.

In June, the prices of XRP and Solana (SOL) could experience gains due to a market-wide surge akin to the one preceding Bitcoin’s halving. XRP broke past the $0.70 threshold in March, while SOL soared above $200.

According to CoinGape’s predictions, meme coins such as SHIB, FLOKI, and BONK are poised for a rally. The Shiba Inu coin is expected to experience growth due to the increasing hype surrounding meme coins and the upcoming listing of SHIB perpetuals on Coinbase International Exchange.

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2024-05-31 17:38