The crypto market experienced a steep drop in Bitcoin’s price during the US session, with Bitcoin falling below $59,000 due to higher-than-expected US Consumer Price Index (CPI) numbers for September, showing inflation rising at 2.4%, above the market forecast of 2.3%. This unexpected rise in inflation has raised concerns about the Federal Reserve adopting a more hawkish stance and delaying interest rate cuts, leading to a broader selloff in the crypto market. The uncertainty surrounding interest rates has dampened market sentiment, pushing Bitcoin prices further down.
In addition to the inflation concerns, regulatory actions targeting the cryptocurrency sector have also weighed on Bitcoin’s price. The SEC’s lawsuit and the Department of Justice’s charges against market makers for market manipulation, along with SEC Chair Gary Gensler’s critical remarks labeling the industry as rife with fraud, have intensified investor anxiety. This regulatory pressure has further fueled negative sentiment surrounding BTC. The combination of these factors has led to a bearish outlook for Bitcoin in the short term.
Following the release of the CPI data, Bitcoin’s price fell by over 2%, briefly dipping below $59,000 within the past 24 hours. This decline contributed to a broader selloff in the cryptocurrency market, with the market now anticipating an 84% chance of a 25 basis point rate cut by the Federal Reserve at their upcoming November meeting. The unexpected rise in inflation has increased market volatility for Bitcoin, potentially pushing its price further down if the Federal Reserve adopts a more hawkish stance. The current financial climate reflects this uncertainty, with the US 10-year bond yield climbing and the US Dollar Index dropping.
The recent regulatory actions in the US have added downward pressure to Bitcoin’s price, with market sentiment turning negative due to legal pressures and critical remarks from regulators. Analysts predict that Bitcoin may remain range-bound until regulatory clarity improves, with limited potential for significant price recovery in the short term. Analysts suggest that Bitcoin could face continued selling pressure and may struggle to regain momentum, risking further declines below $60,000 until after the US elections in November.
Bitcoin’s short-term outlook remains cautiously bearish below $61,240, with immediate support at $59,540 and resistance levels at $60,740 and $61,985. The Relative Strength Index (RSI) indicates neutral momentum, but a break below the support level could trigger further selling and push prices back to deeper levels. Despite the recent bounce in Bitcoin’s price, potential short-term bullish momentum is still capped by strong resistance levels, highlighting the uncertainty in the market.
Pepe Unchained ($PEPU) has gained attention in the meme coin market, raising over $18 million in its presale with a presale price of $0.00995 per token. The token’s strong presale performance, secure contract audits, and high staking APY of 499% position it as a potential top performer in the meme coin space. With investor sentiment remaining positive, $PEPU’s growth potential and staking rewards make it a coin to watch for potential price increases. However, investors should be cautious when investing in cryptocurrencies as they are high-risk assets.
