Bitcoin has kept its head above the $30,000 line for the last three weeks, but U.S. inflation numbers and jobless claims weigh heavy on investor confidence.
The price of the world's largest crypto currency declined 0.6% to $30,167 at 6:30 a.m. EDT, according to CoinGecko.
The release of minutes from the U.S. Federal Reserve’s June 13-14 meeting showed officials deemed it “appropriate or acceptable” to have a rate pause in June. However, the minutes revealed a consensus to hike again later this month.
"With headline inflation continuing to drift lower while core inflation remains sticky, don’t expect the narrative to change too much when it comes to this month’s Fed meeting," Nexo co-founder Antoni Trenchev told The Block.
As macroeconomic conditions begin to tighten, "it’s going to take something more to push Bitcoin through the upper end of the recent trading range at $31,5000," Trenchev added.
In light of more U.S. monetary tightening, Trenchev advises investors adjust their expectations accordingly. "It might well be that Bitcoin continues to hover around the current £30,000 levels, as it has for almost 3 weeks," he added.
The degree to which the Fed applies its tightening policies after July is an unknown factor creating "uncertainty for crypto prices and risk assets," Trenchev said.
Bitcoin tends to march in lockstep with major indices. On Monday, major equity futures tied to the S&P 500 and Nasdaq 100 fell and European stocks declined ahead of Wednesday's release of U.S. inflation data. The CPI is expected to have risen to an annual rate of 3.1% in June.
U.S. jobless claims data come Thursday, with unemployment benefits expected to increase to around 249,000, from 248,000 for the previous week.
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