The CoinSpeech team has curated the most crucial insights from CryptosRUs’s recent overview of Bitcoin’s current landscape. In this analysis, we explore the looming economic factors and their possible impact on Bitcoin. You can watch the full video from CryptosRUs below.
Bitcoin’s Current Support Levels
Bitcoin has tested key support at $67,000, which is slightly lower than the previously beloved $70,000 to $71,000 range.
“It’s not time to panic; it’s holding at $67,000,” says CryptosRUs.
Zooming out, the dips observed over the past few months are common and don’t indicate immediate concern.
Inflation and Federal Reserve’s Impact
The fate of Bitcoin may hinge on tomorrow’s CPI (Consumer Price Index) data release and the Federal Open Market Committee (FOMC) meeting.
Everyone is expecting a 3.4% inflation reading. CryptosRUs states, “If we get a reading that’s lower… that will send markets soaring.”
On the contrary, if the reading is higher than 3.4%, the market could experience one of its most significant crashes in recent times.
Market Speculations and Trends
According to analysts, there’s only a 2% chance of a rate cut happening tomorrow, making it extremely unlikely. However, if inflation numbers are surprisingly low, analysts believe, “That gives him [Fed Chair Powell] the green flag to say… we will be cutting.”
The aftermath of FOMC meetings historically shows market dips, with recovery often following the day after. CryptosRUs notes, “Usually the day of… the markets tank, but… Thursday it starts going up.”
International Influence and Bitcoin Trading
Bitcoin being a global asset means that U.S. economic changes have a significant impact worldwide.
“Most of the volume for Bitcoin is in North America… because institutions,” he explains, emphasizing that U.S. financial decisions lead global market trends.
ETF Withdrawals and Miner Selling
Bitcoin ETFs faced significant outflows recently, with Grayscale seeing a $121 million outflow.
Miners are also selling Bitcoins to cover operational costs, especially post-halving, making it more difficult to profit.
“It is now twice as difficult to make the same amount as before because now you get rewarded with half the amount of Bitcoin,” CryptosRUs explains.
Long-Term Bitcoin Strategy
Despite short-term volatility, the long-term outlook remains strong. CryptosRUs advises, “If you’re going to truly make money… you need to think long term.”
Bitcoin’s reserves on exchanges continue to drop, and demand outweighs supply, suggesting a positive long-term trajectory.
“The balance is coming, the next leg is coming… and when it comes, it’s going to be ferocious,” CryptosRUs highlights.
Bitcoin Adoption and Innovation
Stacks, an L2 layer for Bitcoin, and other projects continue to drive innovation, including programmable layers and applications on Bitcoin.
“Bitcoin has a lot of things going on… it’s a programmable layer too… with many innovations,” notes CryptosRUs.
Global Economic Landscape and Crypto Regulation
With countries like Brazil opening cryptocurrency trading to all users, Bitcoin’s global adoption seems to be growing steadily amid economic uncertainty.
“The best way to fight [economic turmoil] is by buying Bitcoin and crypto,” CryptosRUs asserts.