Could a Surprise Fed Cut Send Bitcoin to New Highs?

All eyes are on two key dates: the release of Federal Reserve minutes on July 9 and the FOMC meeting […]

The post Could a Surprise Fed Cut Send Bitcoin to New Highs? appeared first on Coindoo.

All eyes are on two key dates: the release of Federal Reserve minutes on July 9 and the FOMC meeting scheduled for July 30. While most investors don’t expect a rate cut this month, falling inflation is fueling speculation that the Fed could change its stance.

Data from Truflation shows inflation in the U.S. has plunged from 2.27% to 1.70% in under two weeks—just ahead of the CPI release on July 15. If official numbers confirm this decline, markets could quickly reprice expectations, making a surprise rate cut more likely.

So far, traders are pricing in no change this month, with 95% of forecasts pointing to a hold. But if the Fed hints at shifting sentiment in the July 9 minutes and inflation data continues to cool, it may set the stage for a September cut—currently expected by 61% of market watchers.

   

 

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Technically, Bitcoin shows signs of a potential breakout. A bullish pennant on the 4-hour chart suggests BTC could rise nearly 5% if it breaks above $108,547, potentially pushing toward a new all-time high near $113,913. Momentum indicators like RSI (currently 51) and the Awesome Oscillator are turning more favorable, signaling that bears are losing steam.

In short: If inflation data surprises to the downside and rate-cut speculation intensifies, Bitcoin could rally sharply. But if macro conditions stay unchanged, BTC may remain trapped in its current range through July.

The post Could a Surprise Fed Cut Send Bitcoin to New Highs? appeared first on Coindoo.

 

Source: https://coindoo.com/could-a-surprise-fed-cut-send-bitcoin-to-new-highs/

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