Bitcoin's price showed minimal movement on Friday as traders exercised caution ahead of the release of crucial U.S. inflation data, which is expected to influen

Bitcoin Holds Steady as Traders Await Key U.S. Inflation Data


blog post cover photo

Image credit: André François McKenzie

Bitcoin's price showed minimal movement on Friday as traders exercised caution ahead of the release of crucial U.S. inflation data, which is expected to influence interest rate expectations. Despite this cautious stance, Bitcoin has maintained strong gains throughout May.

Bitcoin's Performance Amidst Market Uncertainty

In the past 24 hours, Bitcoin rose by 0.5% to $68,489.9 as of 01:13 ET (05:13 GMT). This modest increase positions the cryptocurrency for a nearly 13% rise in May. However, Bitcoin remains confined within the $60,000 to $70,000 trading range that has persisted since mid-March.

Impact of Macroeconomic Factors

Crypto prices showed little response to an overnight decline in the dollar, as fears of sustained high interest rates lingered despite a downward revision to first-quarter gross domestic product (GDP) data. These rate fears have been the primary factor behind Bitcoin's rangebound performance, as the prospect of high interest rates has dampened the price outlook for Bitcoin and the broader cryptocurrency market.

Inflation and Interest Rates in Focus

The upcoming release of the Personal Consumption Expenditures (PCE) data, a key inflation indicator, is in sharp focus for traders and investors. The PCE data is likely to factor heavily into the Federal Reserve's outlook on interest rates. Persistently high inflation could reinforce the expectation of high-for-longer interest rates, which in turn could weigh on Bitcoin's price performance.

Key Takeaways for Investors

  1. Stable Yet Rangebound: Bitcoin has shown resilience with strong monthly gains, yet it remains rangebound due to macroeconomic uncertainties.
  2. Macro Factors: Inflation data and interest rate outlooks are crucial factors influencing Bitcoin's price movement. Investors should keep an eye on these indicators.
  3. Market Sentiment: The broader market sentiment towards cryptocurrencies remains cautious amidst ongoing economic data releases and interest rate expectations.

CTA: Stay informed about the latest financial trends and make data-driven investment decisions. Visit the Financial Modeling Prep website and leverage our API for comprehensive earnings, financial statement analysis, economic indicators, and more.

As the market navigates through these economic uncertainties, keeping abreast of key data releases and understanding their implications on interest rates and cryptocurrency prices will be vital for investors.

Other Blogs

Nov 25, 2023 6:39 AM - Parth Sanghvi

DCF Valuation vs. Comparable Companies Analysis: Choosing the Right Valuation Method

Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...

blog post title

Dec 23, 2023 2:19 AM - Parth Sanghvi

Understanding the Limitations of DCF Analysis: A Guide to Overcoming Challenges

Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...

blog post title

Dec 25, 2023 2:28 AM - Parth Sanghvi

Integrating Sustainability into Valuations: Navigating ESG Factors within the Discounted Cash Flow (DCF) Model

Introduction: The investment landscape is undergoing a profound shift with a heightened emphasis on sustainability and responsible investing. In this blog post, we explore the intersection of Environmental, Social, and Governance (ESG) considerations within the Discounted Cash Flow (DCF) model, h...

blog post title


Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
2017-2024 © Financial Modeling Prep