The next two days are crucial for the cryptocurrency market, especially the price of Bitcoin. As the United States prepares to release key economic data on April 10 and 11, 2024, investors are closely watching how this could impact the cryptoasset landscape.

Economic data in focus for Bitcoin price

On April 10th, the Consumer Price Index (CPI) for March, a key inflation indicator, takes center stage. While inflationary pressures have been a major concern for investors globally, CPI data will shed light on current trends in the US economy. Stable or declining inflation rates could instill confidence in the market, potentially leading to increased investment in riskier assets such as Bitcoin.

Following the CPI release, the minutes of the March Federal Open Market Committee (FOMC) meeting will be released on April 11. These minutes offer valuable insights into the FED’s thought processes and potential future actions regarding interest rates. Market expectations are leaning towards stable interest rates, which could be a positive sign for cryptocurrencies. Stable interest rates make borrowing easier and encourage investment in potentially risky assets.

Bitcoin halving: A price catalyst?

The upcoming Bitcoin halving, scheduled for later this month, also adds another layer of interest. This pre-programmed event significantly reduces the number of new Bitcoins entering circulation by halving the block reward for miners. With the halving less than 10 days away, the anticipation is palpable. This reduction in supply, coupled with potentially favorable economic data, could create the perfect storm for Bitcoin price growth.

Market experts such as Markus Thielen, founder of 10x Research, believe that the recent price declines in Bitcoin could be a temporary jitters before the CPI release. He emphasizes that the positive performance of the Nasdaq index, a tech-heavy stock market indicator, is a positive signal for Bitcoin and other risky assets. This suggests that Bitcoin’s decline could be short-lived and a rebound could be imminent.

What are the critical levels in BTC?

As traders look ahead to upcoming events, it’s important to keep an eye on Bitcoin’s key price levels. Currently, Bitcoin is hovering around $71,539. If the economic news turns out to be positive for the US, Bitcoin could experience a significant increase as investors look for riskier avenues for investment. However, according to experts, key support levels such as $67,000 and the 50-day Exponential Moving Average (EMA) around $57,757 should be closely monitored. These levels could act as potential support zones in case the price action takes an unexpected direction.

The coming days present a unique stream of events for the cryptocurrency market. US economic data and the upcoming Bitcoin halving create a risky environment for Bitcoin and other crypto assets. While some volatility is expected in the short term, positive economic indicators and a reduction in new Bitcoin supply could pave the way for long-term price appreciation. As with any investment, careful analysis and a well-defined strategy remain paramount for crypto investors in these crucial moments.