Bitcoin price nears $70,000 as US inflation eases

With the $70,000 mark in sight, Bitcoin is poised for further price gains. The recent rise in Bitcoin (BTC) prices is slowing inflation in the US.

In June, US prices rose only modestly, indicating a cooling of inflation. This could prompt the Federal Reserve to cut rates in September, which could be very beneficial for riskier assets like Bitcoin.

Will the central bank cut interest rates?

The U.S. Commerce Department reported a slight slowdown in consumer spending last month. The central bank’s preferred inflation measure rose just 0.1 percent in June. It means increase 2.5 percent Compared to a year ago. The central bank has previously set an annual inflation target of 2 percent. At this value central bank will reduce interest rates.

Cooling inflation gives the central bank more room to cut interest rates. A low interest rate means it’s cheaper to borrow money. This leads to more liquidity, which can drive up the price of crypto assets like Bitcoin. If this happens, the end of 2024 will be very interesting for the crypto market.

Exciting months ahead

These months will be exciting in America. With interest rates falling and the presidential election looming, a lot is about to change. It’s a tumultuous time, especially for the crypto industry. Analysts expect the price of Bitcoin to be highly correlated with the potential re-election of Donald Trump in the coming months. Trump has caught the attention of the crypto industry with his pro-crypto approach.

He even attended the annual Bitcoin conference in Nashville this weekend. Trump made several big promises to the Bitcoin industry during a speech. For example, on his first day as president, he would fire Gary Gensler, the head of the US Securities and Exchange Commission (SEC). He also promised not to sell bitcoins held by the US government.

Trade €10,000 for free and get a €10 bonus

Are you looking to enter the world of crypto and buy Bitcoin or another crypto? Grab your chance now! Thanks to a special deal between Newsbit and Bitwao, our readers get an exclusive offer.

Create an account with Bitvavo with the button below and get 10 euros absolutely free. And that’s not all – you pay no trading fees on your first 10,000 euros of transactions for 7 days after registering your account.* Register now!

* Note, there are conditions Applicable for promotion.