The U.S. CPI will be announced tonight, the key to the Fed's interest rate cut! QCP Capital offers 4 reasons to be bullish on Bitcoin

This site (120btc.coM): Although the German government transferred another 10,853.5 Bitcoins (approximately US$638 million) yesterday (10th), the price of Bitcoin did not fall further below the current low of US$54,000. , still holding on at around $58,000, is now trading at $57,904, up 0.46% in the past 24 hours.

Regarding the fact that BTC has not reached new lows, digital asset trading company QCP Capital released the latest report last night saying: In the past week, the overall economic background has become more optimistic, and we believe that cryptocurrency has hit the bottom.

QCP Capital put forward 4 reasons to be bullish

In the report, QCP Capital pointed out 4 reasons to be bullish:

1. Last week’s employment data softened, and even Fed Chairman Ball’s testimony in the Senate reiterated that market conditions are moving towards the ultimate goal.

At the House of Representatives’ monetary policy hearing last night, Powell also reiterated that the U.S. economy has begun to cool down and said that there is no need to wait for inflation to fall to 2% before starting to cut interest rates.

2. Although the German police sold more than 6,000 BTC and the potential selling pressure of MtGox repayment is pending, BTC has formed a double bottom and failed to fall below $54,000.

Currently, the German government has transferred a total of 34,342 BTC, and the number of BTC it still holds is only 15,552 BTC (approximately US$900 million), which is less than 30% of its original position. It is expected to complete the liquidation this week. The longest period for Mt.Gox to repay BTC is about three months. It remains to be seen how much selling pressure this will cause on the market.

3. Tonight’s weak CPI data may finally solidify the Fed’s decision to cut interest rates in September and December.

Currently, according to CMEFedWatch, the probability of an interest rate cut in September is as high as 70%.

4. A series of S-1 revisions for the ETH spot ETF may also indicate that a transaction is about to occur. We believe this will happen this month, especially if the fee schedule is announced by the applicant.

Bloomberg analyst James Seyffart has predicted that the ETH spot ETF may be listed later this week or the week of July 15.

US CPI will be released tonight, be careful of fluctuations

Tonight at 20:30, the US will release the Consumer Price Index (CPI) for June, which is crucial to the prospects of subsequent interest rate cuts by the Federal Reserve. Analysts currently estimate that the CPI in June will be 0.2% month-on-month. If it is lower than or exceeds it, it may trigger violent turmoil in the US stock market.

In particular, the U.S. stock market has hit new highs repeatedly in recent days. If it is unexpectedly higher than forecast, it means that inflation is picking up, which may lead to a sharp decline.

Binance CEO: Prices may be volatile but industry fundamentals are strong

On the other hand, despite the failure of Bitcoin prices to perform strongly, inflows into Bitcoin spot ETFs remained strong. After hitting a total net inflow of US$143 million on the 5th (a new high in a month), net inflows reached US$295 million and US$216 million respectively on the 6th and 7th, highlighting investors' strong interest in Bitcoin.

In this regard, Binance CEO Richard Teng said: In the past 6 months, U.S.-listed Bitcoin ETFs have brought in more than $14.7 billion in net inflows (the latest data is $15.4 billion). What does this mean? Interest in Bitcoin and digital assets remains high. While token prices and market caps will fluctuate, the long-term fundamentals of our industry remain strong.

Richard Teng’s words urge the community to continue to stay focused and continue to build despite market fluctuations.

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