Zinger Key Points
- Crypto analyst Ted observes that slowing inflation, with core PCE data at 2.7% YoY, creates optimism for Bitcoin and Ethereum.
- Ted highlights the importance of upcoming employment data and critical support levels.
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Crypto and macro analyst Ted provided a comprehensive market outlook, highlighting key economic trends and their potential impact on Bitcoin BTC/USD and Ethereum ETH/USD.
What Happened: Ted noted that inflation, as measured by the PCE data, has shown signs of slowing, "Core printed 2.7% year-over-year, and headline 2.8%." However, these are slightly above the Fed’s 2% target, the downward trend is seen as positive. "The trend is very much our friend in this case," the analyst added, suggesting optimism for long-term risk asset bulls.
With inflation seemingly under control, the market focus shifts to employment data, a critical component of the Fed’s mandate. "May’s report is due on Friday, expecting a steady 3.9% unemployment rate and 185,000 jobs added," Ted outlined.
Meeting these expectations could reinforce the uptrend in risk assets, with Bitcoin testing new highs in the coming weeks. Traditional finance investors could be attracted to allocating gains into Spot Bitcoin ETFs which has slowed down recently.
He pointed out Bitcoin's weekly range between $63,300 and $72,200, while Ethereum is trading in a range between $3,440 -and $4,110. For Bitcoin, the critical support level to watch is $66,000, tied to the one-day 50EMA, which is identified for preserving the short-term trend.
Also Read: Bitcoin’s New All-Time High Depends On This Macro Indicator: 10x Research
Why It Matters: Ted’s analysis links current economic conditions with potential market movements, highlighting the importance of both inflation and employment data. The upcoming Fed meeting in nine days and Friday’s employment numbers are pivotal events that could quickly reprice market expectations.
Despite the PCE data aligning with expectations and not causing significant immediate market reactions, it’s seen as setting the stage for potential future central bank easing. "This data is optimistic for risk asset bulls longer term," Ted explained, emphasizing a favorable outlook if inflation continues to be controlled.
May’s total non-farm payroll employment increase by 175,000 and the latest unemployment rate at 3.9% did little to change the price of Bitcoin and Ethereum, which increased 1.8% and 0.8%, respectively from May 3 to May 5.
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next: Bitcoin To Surge Over $110K In Q3 Despite Impending Recession Fears, Says Economist Henrik Zeberg
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock
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