Bitcoin continues to trade within a range of $109,000 to $112,000 as it awaits US inflation data, which may affect the Fed's decision on interest rate cuts.
Current Market Situation of Bitcoin
Currently, Bitcoin is trading in a narrow range, which has persisted for 230 days. Last Friday, strong job data in the US had a slight impact on the price, dropping it to $109,000 from $110,000. The unemployment rate stood at 4.1%, slightly better than the anticipated 4.3%.
Impact of Inflation Data on Fed's Decision
Despite the strong job data, analysts point to inflation as a key deciding factor for the Fed's next move. If the July 15 Consumer Price Index report shows inflation falling to around 2.3% to 2.4%, the Fed may still consider a rate cut. This decision would be positive for risk assets like Bitcoin.
Growth Prospects for Bitcoin and Altcoins
On-chain data suggests that Bitcoin's current consolidation phase could lead to a 50% price increase. If this trend continues, Bitcoin's price may rise to approximately $160,000. During this consolidation period, altcoins like Ethereum are also showing positive momentum, with its price increasing to over $2,625.
Bitcoin is at a crucial juncture, influenced by key factors that may affect its future performance. Attention to upcoming economic data will keep market volatility high.
