Ethereum

Future

Bitcoin

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Bitcoin [BTC] dropped below $58K after a softer June CPI data, mirroring US stock equities losses.</li>
 <li>Analysts project a bullish reversal for BTC, with a potential retest of $50K-52K before reaching the $64K target.</li>
</ul>
<p>On June 11, <a href="https://coineagle.com/price/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin [BTC]</a> experienced a drop, reflecting the losses in US stock equities, particularly Big Tech, following a softer June CPI (Consumer Price Index) print.</p>
<p>BTC was unable to reclaim the $60K mark and fell below $58K subsequent to the release of the inflation data.</p>
<h2 id="inflation-data-and-bitcoin">Inflation Data and Bitcoin</h2>
<p>The June CPI data showed a slight decrease at 3.0%, compared to May’s 3.3%, indicating a slight easing in the overall weighted consumer price for goods and services.</p>
<p>This softer inflation could validate the recent disinflation trend, thereby increasing the chances of the Fed rate cuts later in the year, a move that could be beneficial for risk assets, including the crypto market.</p>
<p>However, post the CPI data release, investors reportedly moved out of Big Tech stocks, driving their prices down along with BTC, and instead invested in small-cap US stocks.</p>
<h2 id="small-cap-outperformance-and-bitcoin">Small-Cap Outperformance and Bitcoin</h2>
<p>Quinn Thompson, founder of crypto hedge fund Lekker Capital, suggested that the “small-cap outperformance” could potentially bolster Bitcoin’s recovery.</p>
<p>He stated, “Small cap outperformance tends to coincide with crypto strength. Let’s see if the macro can overpower the #Bitcoin supply overhang.”</p>
<p>The chart above depicted a positive correlation between the performance of small-cap stocks, tracked by iShares Russell 2000 ETF (IWM), and BTC.</p>
<p>As of press time, the chances of Fed rate cuts in September have increased to over 80% due to the softer June inflation.</p>
<p>However, the improving macro prospects could be negatively impacted by Bitcoin supply overhang, particularly from the German government sell-offs, as warned by Thompson.</p>
<p>As of July 12, German holdings were less than 10K BTC out of 50K BTC held in mid-June, indicating that its supply pressure could significantly decrease by the following week.</p>
<h2 id="bitcoin-s-future-price">Bitcoin’s Future Price</h2>
<p>With the potential easing of supply pressure, the upcoming <a href="https://coineagle.com/price/ethereum/" rel="noopener noreferrer nofollow">Ethereum [ETH]</a> ETF, and softer CPI, analysts from QCP Capital predict that BTC could break free from its current sideways movement.</p>
<p>Stockmoney Lizards, a renowned BTC analyst, suggests that a retest of $50K-52K could be possible before the $64K target is hit.</p>

Bitcoin Stumbles below $60K Amid June CPI Indicating Possible Fed Rate Reductions: What’s Next?

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