Bitcoin maintains $52K price despite decreasing likelihood of Fed rate cut.

Bitcoin (BTC) remained steady at $52,000 as the US macro data exceeded expectations on February 16, when Wall Street opened. The Producer Price Index (PPI) figures for January compounded the US inflation concerns, following closely behind the Consumer Price Index (CPI) report two days earlier. Although the PPI was slightly lower than the previous month, it still surpassed market forecasts. Coupled with the high CPI, this data made the markets more apprehensive about the Federal Reserve’s plans to ease fiscal policy this year. According to CME Group’s FedWatch Tool, the probability of an interest rate cut at the March meeting was 8.5%, compared to the 17.5% at the beginning of the week. The Kobeissi Letter, a trading resource, stated that a rate cut in March is unlikely after this data. Bitcoin reached $52,884 on Bitstamp the day before, its highest level since late November 2021, but faced selling pressure. Skew, a popular trader, analyzed the four-hour timeframes and highlighted the significance of the 21-period exponential moving average (EMA) at around $51,000. The US spot-Bitcoin exchange-traded funds (ETFs) saw net inflows of nearly $500 million on February 15, adding to a successful week that saw increased interest more than a month after their initial launch. However, some market observers expressed concern that a slowdown in ETF interest could lead to a significant decline in Bitcoin’s price. Venturefounder, a contributor at CryptoQuant, suggested that if Bitcoin ETF interest levels out, a correction of 20-30% could occur. Previous analysis outlined potential price floor levels for BTC, ranging as low as $34,000. This article is for informational purposes only and does not provide investment advice. Readers should conduct their own research before making any investment decisions.