Bitcoin (BTC) faced the risk of losing its earlier gains as volatility increased ahead of macro data reports on May 14.
BTC/USD experienced price fluctuations, dipping to $61,440 on Bitstamp. The cryptocurrency had reached as high as $63,450 the day before, posing a threat to overleveraged shorts.
Despite efforts by the bulls, BTC failed to gain momentum. CoinGlass data showed a significant amount of liquidity being taken to the downside.
Ahead of economic reports from the United States, bids at $60,000 and $65,000 were strengthening. The Producer Price Index (PPI) print and comments from Federal Reserve Chair Jerome Powell were expected to impact the market.
Bitcoin has been consistently neutralizing liquidity above and below its spot price, remaining within a narrow range since the end of April.
Financial commentator Tedtalksmacro highlighted the importance of the PPI numbers, as they would be released before the Consumer Price Index (CPI) readout for April. This uncommon scenario for traders did not account for unexpected data outcomes.
According to data from CME Group’s FedWatch Tool, significant surprises would be required to shift market expectations of an interest rate cut from the Fed before September. The odds of a 25-basis-point cut at the June meeting of the Federal Open Market Committee (FOMC) were only 3.5% at the time of writing, with 24.6% for the July meeting.
Please note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.