With Bitcoin BTC/USD failing to rally to a new all-time high in face of stronger-than-anticipated labor market data, one trader expects sideways price action until next week.
What Happened: Pseudonymous trader Kevin predicts minimal price movement in the coming days ahead of significant economic data on Wednesday, June 12.
Kevin stated, "Given that next Wednesday is such a big day I'm not expecting any price action until then. Complete sideways is expected and maybe even a small drop in the time between." He advised his followers to take a break for the next five days.
Emphasizing the importance of the upcoming Wednesday, he mentions it as the most significant day for the markets in a long time. He noted the convergence of key economic indicators, including the Consumer Price Index (CPI), Core CPI, and the Federal Open Market Committee (FOMC) meeting.
In another tweet, Kevin conducted a poll for the crypto community, with more than 70% expecting higher prices in the short term.
Also Read: Can Bitcoin Push Beyond $80K? Why This Trader Thinks ‘It’s Time’
Why It Matters: Kevin’s insights are crucial for investors and traders, especially those involved in the cryptocurrency market. The convergence of CPI, Core CPI, and FOMC announcements on a single day is rare and can lead to significant market volatility.
In the past, Bitcoin BTC/USD, Ethereum ETH/USD Dogecoin DOGE/USD have reacted after the FOMC Meeting data release, as interest rates have a direct relation with investments in risk assets. Crypto analyst Benjamin Cowen noted that despite the Fed maintaining interest rates at 5.5% and announcing a tapering of quantitative tightening starting in June, it will only prolong the process of Bitcoin dominance reaching its peak.
Macro trader Ted recently highlighted that a steady employment rate and upbeat job addition could lead to an uptrend in risk assets. Traditional finance investors could be attracted to allocating gains into Spot Bitcoin ETFs which has slowed down recently.
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 Spot ETFs Can’t Get Enough With Historic 18-Day Buying Spree: Is This A New Gold Rush?
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