This week could play a crucial role in Bitcoin’s upcoming price trajectory.
The Bitcoin price is currently showing strong fluctuations, driven by the sell-offs from the German government and the subsequent recovery. However, it is certainly displaying a bearish inclination that could push the BTC price down to $51k.
That is if this week’s CPI data does not spark a major recovery.
Indeed, this week’s CPI and PPI prints have the potential to significantly increase the likelihood of an interest rate cut in July, a decidedly bullish scenario for Bitcoin and the large-cap altcoins. Investors are also eyeing new crypto coins such as PlayDoge and eTukTuk
Will The CPI Lead To A Rate Cut In July?
The Consumer Price Index is a crucial metric for inflation in the US economy and typically has a marked impact on Bitcoin’s price trajectory.
However, this week’s CPI could result in particularly high volatility. The Federal Reserve is on the verge of kicking off its quantitative easing measures for the first time in three years.
Currently, the CME FedWatch tool is showing a nearly 75% probability of interest rate cuts in September. In fact, some experts are calling this scenario a lock.
The only major question now remains whether the Fed could surprise the market with a rate in July’s FOMC meeting.
The Personal Consumption Expenditure index or the PCE for May has already come in line with the market’s expectations. Notably, it is the Fed’s preferred measure for inflation. Furthermore, last week’s ISM Service PMI and Factory Orders data turned out to be big misses, raising recession concerns in the US economy.
Consequently, Global Markets Analyst for Investing.com Jesse Cohen underscored the possibility of a shock July rate cut by the Fed.
This week’s CPI and PPI prints could further increase the possibility of this scenario. However. The CME FedWatch is only showing a nearly 5% probability of an interest rate cut in July.
Will The Bitcoin Price Start Its Recovery This Week?
While the possibility of a July rate cut may be small, this week provides plenty of narratives to put the BTC bulls back in control.
For instance, Fed Chair Jerome Powell is set to speak on Tuesday, whose speeches have marked the Bitcoin bottom several times in the past few months. Better-than-expected CPI and PPI prints could also play in favour of a Bitcoin price recovery.
As if the stars are aligning for the bulls, the German government is quickly running out of its BTC holdings.
The Bitcoin price initially needs to flip its 1-Day 200 Simple Moving Average, which is currently hovering near the $58,700 mark.
Subsequently, a flip of the $63k resistance could put the bulls back in control and kickstart a recovery towards $70k.
Large Caps and New Crypto Coins To Watch For
If the Bitcoin price does show bullish strength this week, a few altcoins are expected to outperform the others.
For instance, Bonk has rallied by nearly 8% today on Monday, despite the fluctuating BTC price chart. A recovery in Bitcoin would provide a major boost that could help it flip Dogwifhat as the top Solana meme coin.
Investors are also eyeing Chainlink, with whales and institutions stacking the token on a daily basis. Data from Lookonchain reveals that 90 new wallets withdrew $86 million worth of LINK today.
New crypto coins are also in high demand and could provide major profitability to early investors.
For instance, the top green crypto and P2E token eTukTuk’s presale is set to end on July 15th after raising $3.5 million. The token could be launching in the midst of a major crypto market recovery, providing the ideal backdrop for a strong post-IEO rally.
It is also expected to receive a boost from Notcoin’s continued rally, considering that TUK is expected to emerge as a major player in the GameFi sector. Its play-to-earn gameplay is based on the widely popular Crazy Taxi game.
PlayDoge is another new GameFi cryptocurrency that is in high demand, having already raised nearly $5.5 million in its ongoing ICO.
Thanks to its combination of the iconic Doge character and the nostalgia for Tamagotchi, $PLAY has received the backing of several smart money investors, with some even hinting at 10x to 20x returns.
