The Federal Reserve has announced that it will maintain interest rates at 5.25%-5.50% following today’s FOMC meeting, with only one rate cut expected for the year. Despite this decision, analysts at Bitfinex predict a positive outcome for Bitcoin, regardless of whether the FOMC cuts rates or keeps them steady in the coming quarters. They suggest that a rate cut is likely to stimulate immediate bullish action, while a decision to hold rates steady could result in a more stable but positive trend.
This decision from the FOMC comes after the release of the May Consumer Price Index (CPI) data, which showed a slight slowdown in inflation to 3.3% year-over-year, down from April’s 3.4%. The crypto market responded positively to this news, with Bitcoin gaining 2.3% and the top 20 cryptocurrencies all showing positive movement. The moderation in inflation has raised hopes for potential interest rate cuts by the Federal Reserve in the coming months.
On the AI front, the ASI Alliance, consisting of Fetch.ai, SingularityNET, and Ocean Protocol, has announced a new date for their anticipated token merger. Originally scheduled for June 13, the event has been rescheduled for July 15 to ensure smooth handling of technical and logistical requirements involving exchanges, validators, and ecosystem partners.
Today’s Newsletter:
Bitcoin set to benefit whether FOMC cuts or holds rates: Bitfinex
Bitcoin gains as May CPI data shows moderate inflation numbers
Fetch.ai, SingularityNET, and Ocean Protocol reschedule token merger for July 15
Markets:
Ticker
24hr
7d
Bitcoin
3.4%
– 3.6%
Ethereum
3.1%
– 7.1%
L1s
– 0.4%
– 3.2%
L2s
0.7%
– 8.6%
DeFi
– 0.6%
– 8.2%
Fear & Greed Index
Greed (74)
Greed (75)
Data powered by CoinGecko.
Top Stories:
BITCOIN
Bitcoin set to benefit whether the FOMC cuts or holds rates
Bitfinex analysts suggest that past rate cut decisions have typically led to increased asset prices and ETF inflows, using the gold market as a benchmark. Similar patterns are expected in the market, with all eight of the previous CPI and FOMC events causing increased volatility, at least on an intra-day or intra-week basis.
While Bitfinex analysts did not expect a rate cut decision to be announced today, they anticipate that the Fed will follow movements from entities such as the European Central Bank in the coming months. Monitoring the Fed’s future policy direction will be crucial for predicting long-term market movements. The global liquidity cycle indicates that money supply is likely to increase, which can support asset prices. [cryptobriefing]
BITCOIN
Bitcoin gains as May CPI data shows moderate inflation numbers
Ruslan Lienkha, chief of markets at YouHodler, commented on the current market sentiment, noting that Bitcoin can overcome the resistance level in the range of 71k-73k and reach new all-time highs in the coming weeks, driven by optimism in financial markets. This positive sentiment is fueled by expectations of interest rate cuts in the US and Europe, which stimulate capital inflows into risk assets.
Despite the encouraging CPI data, Federal Reserve Chair Jerome Powell is expected to maintain a cautious stance regarding potential rate cuts during the upcoming FOMC meeting. The central bank is also likely to emphasize the strength of the US economy and the persistence of elevated inflation as reasons to keep interest rates higher for an extended period. [cryptobriefing]
ECOSYSTEM
Fetch.ai, SingularityNET, and Ocean Protocol reschedule token merger for July 15
Once technical integrations with third-party platforms are finalized, the ASI token will be launched, and FET, AGIX, and OCEAN will cease independent trading and merge into ASI. Token holders have been assured that no immediate action is required on their part, and the merger is expected to proceed without further delays.
The merger aims to create the largest open-source, decentralized network focused on the AI industry, challenging the dominance of big tech companies in AI. ASI will serve as a symbol of the shared mission to leverage advanced AI, blockchain, and decentralized governance. [cryptobriefing]
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