Technical Analysis:
BITCOIN is trading at 65950 spot, we have got a structure shift on bitcoin 1D chart which clearly indicates for now bitcoin might reach for higher prices. Price can give a small retracement or dip till 63600-64500 zone and then continue upside towards 70000 level and we have an imbalance near 70K zone so we will have to keep an eye at price around this imbalance. We will still be careful for going in with full quantity in bitcoin.
Fundamentals:
Crypto markets responded positively to U.S. consumer price index (CPI) data showing a 3.4% year-over-year rise in April, which aligned with market expectations. However, retail sales data for April, released on May 15, unsettled investors as it indicated stability from the previous month, contrary to economists' forecasts of a 0.4% increase. This development increased the likelihood of the U.S. Federal Reserve (Fed) implementing measures to stimulate the economy.
Even if the U.S. Fed decides to maintain interest rates above 5.25% for an extended period to control inflation, the central bank may resort to actions such as purchasing government securities to boost the money supply and reducing the discount rate at which banks borrow from the central bank. Essentially, even a hint of continued liquidity provision can shape economic expectations and behaviors.
Contrary to what might be expected, weaker economic activity is often seen as an indicator that more money will be injected into the system, which benefits investments in scarce assets like stocks, gold, and cryptocurrencies. Eventually, the government will need to issue more debt to fund these expansionary measures aimed at preventing an economic recession. Over time, inflation is likely to rise due to the additional money circulating, regardless of the interest rate.
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