Bitcoin started the week positively: pushing 70,000 dollars

The increasing possibility of interest rate cuts triggered a positive start to the week for Bitcoin (BTC).

In the US, prices showed a moderate increase in June. This indicates a decrease in inflation and as a result, the Federal Reserve may lower interest rates in September, potentially paving the way for higher prices in risky assets, including cryptocurrencies.

Macroeconomic data support Bitcoin's rise

The Ministry of Commerce reported on Friday that consumer spending slowed slightly last month. Easing price pressures and a cooling labor market could boost confidence among Fed officials that inflation is trending toward the central bank's 2 percent target.

Data showed that after the personal consumption expenditures price index, which is the preferred measure of inflation by the Fed, remained unchanged in May, it increased by 0.1 percent last month. It also showed a 2.5 percent increase compared to goods and services measured a year ago.

A rate cut, which makes borrowing cheaper for investors, can help increase the prices of crypto assets; some analysts predict that Bitcoin prices could reach up to $100,000 this year. According to CoinGecko data, Bitcoin is currently trading at $69,500.

The Fed's next policy meeting will be held on July 30-31. CME's FedWatch tool, which evaluates Fed fund data, shows a 95.5% chance that there will be no interest rate cut this month.

However, the probability of a 25 basis point reduction in September is over 85%, while the probability of a larger reduction is estimated at 14%.

This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should conduct their own research when making decisions.