Bitcoin Price Prediction: Trades at $61,000 Amid Hawkish Fed Outlook; What’s Next?
Bitcoin (BTC) began the week on a downward trend, trading around $61,000 with an intraday low of $60,675. Despite a previous surge following the U.S. approval of exchange-traded funds (ETFs), Bitcoin has not regained momentum.
The decline is largely due to hawkish comments from the Federal Reserve and speculation that the Fed may postpone its easing plans, driving investors toward safer assets amid economic uncertainty. This has strengthened the U.S. dollar, contributing to Bitcoin’s losses.
Looking ahead, Bitcoin traders will focus on upcoming speeches by Fed officials Jefferson and Mester. Subsequent attention will turn to major U.S. economic reports such as the Consumer Price Index (CPI), Producer Price Index (PPI), and Retail Sales. Stronger-than-expected data could dampen hopes for a Fed rate cut and increase selling pressure on Bitcoin.
The U.S. Federal Reserve’s hawkish tone, alongside weaker consumer sentiment, has strengthened the dollar but applied downward pressure to Bitcoin. Fed officials, including San Francisco’s Mary Daly, have advocated for sustained restrictive policies to manage inflation, while others, like Atlanta’s Raphael Bostic, see potential rate cuts despite prevailing uncertainties.
Conversely, Dallas Fed President Lorie Logan and Minneapolis Fed President Neel Kashkari underscore the risks of inflation, supporting a cautious approach towards rate adjustments.
Recent data compounds the economic outlook; the Michigan Consumer Sentiment Index recorded a significant drop to 67.4 this May, signalling growing consumer concerns about inflation, which may influence future monetary policy decisions. This mixed economic feedback fosters uncertainty, affecting both traditional and digital asset markets.
