Although nothing can be predicted, if the CPI and PPI data are released next week, which will affect the Fed's interest rate and there will be a new move in the market.
CPI was released 2 days ago and was lower than expected, which made the market optimistic, as 95% believe that the Fed will cut interest rates in September. That also helped stocks and bitcoin hit all-time highs, but with the PPI data just released and significantly higher than expected. Bitcoin reacted immediately again and dropped below $118k. This index will put the Fed in a difficult position and a rate cut will be difficult to happen next month when inflation is showing signs of rising again.
Just yesterday, I was convinced that bitcoin could hit $130k by August, but with the PPI just released I'm a little worried.
Indeed, the CPI data and PPI data are contradictory to each other and that is one of the reasons that the market seems to be in panic. However, if we see the Fed Interest Rates data at polymarket, still 71% of the votes are in favor of 25 bps decrease. 3% believe that there will be 50+ bps decrease (that is highly unlikely) and 26% believe that there will be no change. Even then the market price action suggest that no one has the clear direction on rate cuts and bitcoin next price movement.
