Bitcoin is set for a sharp rise. Surprisingly, the Federal Reserve could play a key role in boosting BTC's value, many experts believe.
According to analysts at 10x Research, the US inflation rate and the Fed's actions will be crucial macroeconomic factors affecting BTC this month.
Currently, Bitcoin is trading 7% below its all-time high recorded in March. Throughout May, BTC's price remained stable above $67,000–$68,000. However, from May 27 to June 2, the leading digital asset showed increased volatility. This could be explained by Mt. Gox, a bankrupt exchange, moving Bitcoin, a major hack on Japanese crypto exchange DMM, and the release of US macroeconomic data.
Specialists at 10x Research emphasize that the average daily trading volume of BTC does not exceed $50 billion. They highlight the waning interest in the leading digital asset. Yet, funding rates and the payout indicator for traders with open positions on perpetual futures remain somewhat positive.
Currency strategists at 10x Research believe that actions by the Federal Reserve and climbing inflation could be catalysts for Bitcoin's new growth. Additionally, the US consumer price index (CPI), set to be released on June 12, was anticipated to decline to 3.3%. This could have provided significant support for Bitcoin, according to 10x Research.
Currently, company analysts have noted a significant drop in BTC reserves on exchanges. Last month, 88,000 coins were withdrawn from exchanges, bringing the total volume down to 2.5 million. This is the lowest level since March 2018, experts emphasize.
Notably, the outflow of Bitcoin from exchanges coincided with the end of a 45-day period in which US-registered investors managing over $100 million had to disclose their positions in securities and cryptocurrencies. Analysts believe that the reduced supply of BTC on exchanges will boost demand for the first cryptocurrency.
