Bitcoin (BTC) Price Stuck Below $58,000 as US CPI and German Government BTC Sales Impact the Market

Bitcoin's price has been stuck below $58,000 for a long time. Despite being in a bull market, Bitcoin isn't moving up, and both market and non-market factors are to blame.

Bitcoin’s price has been trading below the $58,000 level for an extended period of time. Despite being in a bull market, Bitcoin has failed to push higher, and both market and non-market factors appear to be impacting the price.

US CPI Impacts Bitcoin Price Rally

The Consumer Price Index (CPI) rose by 3% in June, while analysts are looking at this as a bullish signal for Bitcoin, but the price is not rising. If the US central bank cuts interest rates, fixed-income investments will become less enticing, prompting people to seek out investments with higher returns.

“The Federal Reserve is one step closer to a September rate cut, especially as real average hourly earnings for workers slid by 3.9% year-over-year,” managing director of trading and investing at E-Trade Chris Larkin told CNBC.

The labor force participation rate also saw a slight increase, moving from 62.5% in May to 62.6% in June. Despite the data pointing towards a higher likelihood of rate cuts, with a 90% consensus for at least one 0.25% rate cut by September, Bitcoin’s price is failing to push past the $60,000 level.

Meanwhile, the S&P 500 stock market index is trading just 0.5% below its all-time high, while gold is trading 1.2% below its record high of $2,450 set in May 2024. Even the Russell 2000 small-cap index, which excludes the 1000 largest US-listed companies, saw a 3% gain on July 11.

German Government BTC Sales Impact Bitcoin Price Rally

The German government is continuing to sell the nearly 50,000 bitcoins, which were seized in 2013, into the market. These sales are valued at almost $3 billion. According to Watcher Guru, the German government now has only $285 million worth of BTC left.

Price Analysis: BTC/USD Chart Shows Bearish Pressure, Despite Bull Market

These issues are making the market feel bear despite being in a bull. BTC is currently priced at $57,412, with an RSI value of 48.30. Looking at the Bitcoin chart, we can see a major rejection at $59,500, a strong resistance zone where the MA100 is also located. This 3.87% drop pushed BTC back into the triangle zone, showing that the bears are currently holding a strong ground.

Bitcoin’s market cap has dropped to $110 billion, which is concerning investors. Sources suggest that while retail investors are facing selling pressure, BTC whales and sharks are accumulating. Once the German government finishes selling its BTC and the Mt. Gox repayment pressure eases, the market might stabilize. For everything to settle down, it could take another 1-2 months.

The above is the detailed content of Bitcoin (BTC) Price Stuck Below $58,000 as US CPI and German Government BTC Sales Impact the Market. For more information, please follow other related articles on the PHP Chinese website!