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Friday, July 1, 2022

Bitcoin Price Seems To Be Set On $50K

The price of Bitcoin was able to move above the level of $49,000 due to the heavy selling in the dollar market at the end of last week. Nevertheless, the cryptocurrency has readily struggled to increase its climb above a sum of $50,000, which has been considered as a psychological resistance level- with investors remaining overly cautious above the taper timing of the Federal Reserve.

This comes with the mildly dovish outlook taken up by Jerome Powell, the Fed chairman, during his Friday speech at the annual Jackson Hole symposium. At one point, he had to prevent himself from providing hints as to when the Feds would start unwinding its asset purchasing program worth $120 billion. 

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Jerome Powell mentioned that they would start tapering before the year ended while admitting that the Delta variant could mess things up. He stated that the federal reserves would be carefully assessing the evolving risks as well as the incoming data. In the meantime, the U.S. Bureau of Economic Analysis has reported that the annual PCE price, which the Fed has forever considered its preferred inflation metric for Bitcoin, would remain unchanged at 3.6%, which was about 1.6% higher than the intended target of the central bank. 

Things To Focus On Next Week For Bitcoin

While the first half of the week did not have any major macroeconomic events that could directly impact the crypto market of Bitcoin, the 1st of September would have the Automatic Data Processing Research Institute reveal the private sector employment data of August. At the same time, most investors would also likely watch the ISM Manufacturing PMI for its Prices Paid Component. While doing so, they would be able to gauge the input price pressure in the sector of manufacturing to determine the rate of inflation. 

Friday would also have the Non-farm Payroll data expecting to be shown that the U.S. economy added around 763,000 jobs in August- which would be around 19% lower than the 943,000 print of July for Bitcoin.

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