Analyst expects the bitcoin price to reach a new level in the short term

Analyst expects the bitcoin price to reach a new level in the short term

Bitcoin is once again trying to break the psychological threshold of $60,000. However, after the release of the US Consumer Price Index (CPI) data, there was a significant drop in its price, which fell to $57,000. This development has dramatised the market situation, leading to a decline in other major cryptocurrencies such as Ethereum, Solana and Cardano.

Renowned analyst Alex Kuptsikevich of FxPro expressed his predictions regarding the further development of the bitcoin price. He expects that in the nearest future the price could drop to 55,000 USD.

However, analyst also see the potential for a quick recovery. If further economic data supports the Federal Reserve's (Fed) monetary easing, the bitcoin price could rise as high as USD 66,000.

Interestingly, despite the positive reaction of the US NASDAQ and S&P 500 stock indices to the CPI data, not only bitcoin but other cryptocurrencies continued their decline. This trend points to the increasing sensitivity of the cryptocurrency market to macroeconomic indicators, with investors tending to favour more stable investments over riskier assets in periods of uncertainty.

Fed members have recently been issuing statements in favour of interest rate cuts. Currently, the market expects this to happen as early as September, when a 25 basis point rate cut is due. Some experts, however, are considering the possibility of a surprise 50 basis point cut, which could have a major impact on the cryptocurrency market and spur price gains.

Investors and analysts are therefore anxiously awaiting further developments that could dramatically affect the bitcoin market and the overall dynamics of the cryptocurrency sector.