Bitcoin Price Struggles to Hold Above One-Month Low Ahead of Fed Rate Hike

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Bitcoin Price Struggles to Hold Above One-Month Low Ahead of Fed Rate Hike

As economic data confirms the U.S. economy remains in growth mode, the price of bitcoin (BTC) is barely holding above a one-month low of $29,780. June’s retail sales report from the U.S. Census Bureau showed some weakness, with the headline number rising 0.2% last month versus forecasts for 0.5%. However, the retail sales control group – which filters out some components to compile a more precise gauge of consumer spending – rose 0.6%, more than double May’s pace and far ahead of estimates for a decline of 0.3%. Joseph Brusuelas, chief economist at RSM, commented, Score another win for team soft landing. This implies modest upside risk to his team’s forecast for 1.7% GDP growth in Q2.

Traders are now pricing in a 97.3% chance of another 25 basis-point rate hike at the Federal Open Market Committee (FOMC) meeting next week. Bitcoin, which had rallied as high as $31,800 last Thursday in wake of the favorable court ruling for Ripple’s XRP, now sits at the low end of its recent price range.