April 10th and 11th, 2024, are significant as the United States will release important economic data. On April 10th, the Consumer Price Index (CPI) for March, which measures inflation, will be announced. On April 11th, the minutes from the Federal Open Market Committee (FOMC) meeting in March will be released, which can, in fact, influence interest rate decisions.
The results of these economic events can directly or indirectly affect the performance of digital assets, especially Bitcoin.
Stable Interest Rates
However, interest rates are expected to remain unchanged, thereby suggesting economic stability, which can be perceived positively for crypto. Steady rates make borrowing easier, potentially leading to an increase in investment in riskier assets like cryptocurrencies.
Bitcoin Halving
Also, with less than 10 days until the next Bitcoin halving, where the block reward will decrease from 6.25 BTC to 3.125 BTC, it will have significant implications for Bitcoin and the cryptocurrency market as a whole. The halving will reduce the yearly inflation to approximately 0.8%, resulting in fewer new Bitcoins entering the market and decreasing potential sell pressure.
Despite the reduced emission rate, the high miner revenue in USD, driven by Bitcoin’s price appreciation, will maintain miners’ profitability and ensure the network’s security remains high.
Bitcoin Price Analysis
Bitcoin’s price at present is around $71,539. If the economic news favors the U.S., Bitcoin could also experience a surge as investors seek more risk exposure. Key price levels to watch are $67,000 and the 50-day Exponential Moving Average (EMA) at around $57,757. These are some indicators of potential price movements.
Positive or neutral economic news from the CPI and FOMC could stabilise assets. A steady or decreasing inflation rate may result in market confidence in riskier investments, which would surely benefit Bitcoin.
