- Bitcoin price dipped to around $67,300, trading in a tight range of $67,000-$69,000 despite a strong May.
- Economic data like the Core PCE Price Index and Chicago PMI suggest potential stagflation, which could impact Bitcoin’s price movement.
- June economic reports on PMI and employment could provide the next catalyst for Bitcoin, with strong data possibly leading to a retest of May lows and weak data improving prospects for breaking the all-time high.
Bitcoin’s price has declined below $67,000 after trading in a tight range around $68,000 following the US Memorial Day holiday. However, June economic data could provide the next catalyst for a breakout.
Bitcoin Price Action
The price of bitcoin has traded between $67,000-$69,000 in muted action this week after the holiday. On Friday morning, bitcoin declined to near the week’s low around $67,300, down 1% in 24 hours and over 2% from the brief spike above $69,000.
Broader Market Trends
May has still been a strong month for bitcoin, up 11% since the start of the month around $60,000. However, bitcoin has underperformed the broader CoinDesk 20 index, which has gained 20% in May thanks to ether’s 31% surge.
Potential Macro Catalysts
Bitcoin’s sideways trading came amid struggles for US stocks. While remaining near all-time highs, the Nasdaq fell 2% this week and the S&P 500 declined 1.5%. US economic data showed stagflationary signals, with core PCE inflation steady at 2.8% annually alongside weakening growth data like the plunge in the Chicago PMI.
The June data calendar should provide more clarity on US economic conditions. Next week brings the national PMI and jobs reports. Weaker data that supports lower rates could catalyze a breakout past bitcoin’s all-time high. But strong economic data may lead to a retest of May’s lows.
Conclusion
After rangebound trading around $68,000 post-holiday, bitcoin has dipped below $67,000. However, upcoming June economic data could be the next catalyst for the cryptocurrency after a strong 11% gain in May. Weaker data and lower rates would support further upside, while strong data presents downside risk. The key data to watch will be next week’s PMIs and the monthly jobs report.
