Table of Contents
- Why Are Crypto Prices Down Today?
- Key Support Levels for Bitcoin and Ethereum
- New Meme Coins Remain In High Demand
The Bitcoin price continues its consolidatory price action on Thursday and is currently trading at $68,100 at press time.
Crypto prices continue to show a bearish inclination as the market awaits the key PCE inflation data , set to be released tomorrow on Friday. Notably, the Personal Consumption Expenditure or PCE is the Federal Reserve’s favourite inflation metric, even more than the much-hyped CPI.
Owing to the market uncertainty, smart money traders continue to invest in new meme coins. Tokens such as Dogeverse and Sealana are not only displaying promising price potential but also lack any major correlation with the broader market sentiment.
Why Are Crypto Prices Down Today?
Macroeconomic risks continue to spook the cryptocurrency market as concerns regarding sticky inflation levels and high interest rates remain a roadblock to a sustainable bull rally.
For instance, after another day of weak debt auction on Wednesday, the US 10-year Treasury Yields spiked to 4.623%, surging by 30 basis points in just two weeks. The US 2-year to 30-year yields showed a similar bounce, signalling rising macroeconomic concerns.
Key Fed officials are also adopting a hawkish stance, with Minnesota Fed President Neel Kashkari stating that “many more months of positive inflation data” are required to start quantitative easing. He even teased more interest rate hikes, a decidedly disastrous scenario for large-cap altcoins.
Consequently, the CME FedWatch is no longer favouring an interest rate cut in September, highlighting only a 45% possibility for the move.
All eyes now turn to the upcoming Personal Consumption Expenditure data. As previously mentioned, PCE is the Fed’s preferred inflation measure. In the bearish scenario that the PCE misses the market’s expectations tomorrow, a larger crypto prices crash could follow.
Key Support Levels for Bitcoin and Ethereum
The rising macroeconomic risks have thrown a wrench in May’s crypto bull rally.
Rather than trying to breach the $68k and $72k resistance levels, the bulls now need to defend the crucial $66k - $67k region. Bad PCE data could result in BTC losing this important support, which could kickstart a larger downside move to $60k.
A boring state of mind for the markets as #Bitcoin is consolidating.
— Michaël van de Poppe (@CryptoMichNL) May 30, 2024
Important support level approaching where it must hold $66-67K to avoid further downwards momentum to $60K.
Ethereum ETF likely going live end of June, slow upwards momentum until then. pic.twitter.com/ZrBZzkhxpp
Meanwhile, the altcoins desperately need Ethereum to remain strong against Bitcoin. The ETH/BTC pair must hold above the 0.051 level or face increased selling pressure on altcoins.
Crypto prices would also hope for the skyrocketing US Treasury Yields to cool down in June, without which a larger altcoin rally is out of the question.
