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Bitcoin (BTC-USD) price is set to post a weekly decline. 2.7% increaseIn a week that saw retail inflation fall, while wholesale inflation came in higher than expected.
The world’s oldest cryptocurrency has remained below the $60,000 level all week, but has been hovering around the point, Thursday.
Bitcoin rose to around $59,000 on Thursday on the back of a weaker retail inflation report. The consumer price index continued to slow in June, boosting hopes for interest rate cuts this year.
The consumer price index fell 0.1% on a monthly basis in June, less than the expected 0.1% increase and the 0.0% figure in May, according to a report from the U.S. Bureau of Labor Statistics. Along with the similar advance in the core CPI numbers, inflation remains on track to the Federal Reserve’s 2% target.
However, the producer price index rose 0.2% on a monthly basis in June, beating expectations of +0.1%, and recovering from a 0.2% decline in May.
“With the recent inflation report coming in below expectations, the market is increasingly looking at the possibility of interest rate cuts, which will be a tailwind for asset prices including Bitcoin,” said Corey Klipstein, CEO of Swan, a bitcoin-based financial services company.
However, the cryptocurrency has retreated to around $57,000 after the initial surge.
Bitcoin (BTC-USD) is coming off a rough patch, having seen a 6.5% weekly decline last week as the defunct Japanese exchange Mt. Gox began processing payments.
“Bitcoin is in a corrective pattern ahead of a move to 100k,” said South African analyst at Paul Bear Trading.
“The tense market sentiment could signal a bottom in the recovery,” BullBear Trading added.
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Bitcoin and Ether Prices
Bitcoin (BTC-USD) Up 0.9% To $58.2K at 3:15 PM on Friday, Ethereum (ETH-USD) Increased by ~0.2% to $3.1k.