Bitcoin Bulls Eye $65,800 as Fed Rate Hike Expectations Shift
The Federal Reserve's decision on interest-rate hikes is at the forefront of traders' minds as US inflation data is released this week. The July Consumer Price Index (CPI) and Producer Price Index (PPI) will be closely watched, with markets shifting their expectations of Fed policy.
Last month's CPI result saw its largest monthly decline since April 2020, while nonfarm payrolls numbers showed weaker-than-expected labor-market conditions. This has bolstered odds of a more dovish Fed going forward, with markets now favoring a continued pause at the September 16 meeting over a rate hike.
The Japanese yen remains volatile as it nears the key 160 level against the US dollar. The recent US intervention in the market has sparked debate among traders and economists, with some predicting that the mechanism will fail to stop the yen's weakening trend.
BTC/USD is trading at new month-to-date highs, with traders eyeing the area around $65,800 as crucial for bulls. Larger Bitcoin wallets have been accumulating over the past two months, while retail holders diverge from this trend.