Bitcoin's price has plummeted to around $67,850, with a low of $66,123, as the US dollar gains strength due to robust economic data. The Federal Reserve's policy decisions and inflation figures are crucial for the cryptocurrency's future, and investors are cautious ahead of the Federal Open Market Committee (FOMC) meeting.

Impact of US Federal Reserve Policy on Bitcoin Price

The likelihood of a Federal Reserve interest rate cut in September has decreased, driven by a strong labor market and ongoing inflation. This has led to a surge in the US dollar, putting downward pressure on Bitcoin prices. The Fed might consider a modest 25 basis points rate cut later this year, possibly in November or December.

Key Events to Watch

1. US Consumer Inflation Figures: The headline US Consumer Price Index is expected to ease slightly to 0.1% in May from the previous 0.3%, while the annual rate is predicted to remain at 3.4%, exceeding the Fed’s 2% target.

2. FOMC Meeting and Interest Rate Decision: The Federal Reserve is likely to maintain interest rates and unveil updated economic projections, including the influential “dot plot,” which could impact Bitcoin’s price.

Bitcoin Stability Concerns Amid ETF Debate

Economist Peter Schiff has raised concerns about Bitcoin's stability, particularly with the influx of potential institutional ETF buyers. He argues that relying on ETF purchases to drive Bitcoin prices could increase market volatility, as ETF buyers may eventually sell off their holdings. However, others believe ETF buyers are usually long-term investors, differing from spot traders.

Bitcoin Price Prediction

Bitcoin is currently trading around $66,850, facing challenges in maintaining its position above the pivot point at $65,985, signaling a bearish Bitcoin price prediction. Immediate resistance is observed at $67,600, followed by further resistance levels at $69,200 and $71,000. On the downside, Bitcoin has immediate support at $64,600, with additional support levels at $63,450 and $62,200. The Relative Strength Index (RSI) is at 37, suggesting bearish momentum, and Bitcoin's price is below the 50-day Exponential Moving Average (EMA) of $69,000, further supporting the bearish outlook.

Conclusion

Bitcoin's price is highly dependent on the Federal Reserve's policy decisions and inflation figures. The upcoming events will be crucial in determining the cryptocurrency's future. With the US dollar near a one-month high and Bitcoin's price below the 50-day EMA, the bearish trend is likely to continue.