Critical Week for Bitcoin: Expected Forecast from a Famous Analyst Ahead of the Fed Decision!

This week holds critical importance for Bitcoin (BTC) and the overall cryptocurrency market as the US Federal Reserve is set to announce its decisions regarding interest rates following the release of May’s Consumer Price Index (CPI) and Producer Price Index (PPI) data. Bitcoin failed to sustain above the $71,000 level last week and is currently trading around $69,500.

What to Expect from the Fed Interest Rate Cut?
Last week, with the Bank of Canada and the European Central Bank resorting to monetary expansion and rate cuts, many market analysts believe the likelihood of a similar move by the Federal Reserve is low.

The general expectation is for the Federal Reserve’s policy-setting committee to keep the effective Fed funds rate in the current range of 5.25-5.50%. This rate, the highest seen in 23 years, has been exerting downward pressure on inflation since July last year.

According to CME Group’s FedWatch Tool, investors anticipate the earliest rate cut to occur in September. However, after the Bureau of Labor Statistics’ report showed stronger than expected labor market conditions in May, the probability of a rate cut in September was reduced from 68.7% to 50.8%. This report suggested that wage increases and job growth could exert upward pressure on inflation.

Bitcoin Price Prediction from a Notable Analyst
Renowned crypto analyst Ali Martinez expressed significant expectations for an increase in Bitcoin’s (BTC) value, pinpointing $89,200 as a possible local peak. Martinez highlighted Bitcoin’s Buyer-Seller Ratio reaching 730 on HTX Global, indicating a strong upward movement in Bitcoin’s price in the near future.

Martinez highlighted a significant increase in Bitcoin network activity, noting that the number of daily active Bitcoin addresses broke the declining trend since March 5th. With 765,480 active Bitcoin addresses in the last 24 hours, this supports the optimistic outlook.

According to the analyst, this increase in network activity is being viewed as a positive indicator that the current Bitcoin bull run will continue.