Latest news with #MattMena
Yahoo
2 days ago
- Business
- Yahoo
Bitcoin at $200K by Year-End is Now Firmly in Play, Analyst Says After Muted U.S. Inflation Data
Wednesday's softer-than-expected U.S. inflation has likely set the stage for accelerated gains in bitcoin BTC, potentially to $200,000 by the end of the year, according to Matt Mena, crypto research strategist at 21Shares. "If BTC breaks out of the $105K-$110K range with conviction, we could see a sharp move to $120K and, more importantly, reach our year-end price target of $138.5K by the end of the summer," Mena told CoinDesk in an email. "Today's CPI print may serve as a bullish catalyst for Bitcoin - and it may be the unlock that brings this target forward by several months. If momentum continues building, a $200K Bitcoin by year-end is now firmly in play," Mena added. 21Shares is one of the world's first and largest issuers of crypto exchange-traded products (ETPs), The report from the Labor Department released Wednesday showed that the cost of living, measured by the consumer price index (CPI) rose 0.1% last month after increasing 0.2% in April. Economists surveyed by Reuters had forecast a 0.2% increase. Notably, the CPI for durable goods, most of which are imported or manufactured with imported content, decreased by a seasonally adjusted 0.1% month-to-month (-1.3% annualized), indicating that President Donald Trump's tariffs have not yet been fully passed through to the final consumer. The annualized CPI advanced 2.4%, with core inflation matching the pace of April at 2.8%. "This continued trend of cooling inflation strengthens the case for potential policy easing later this year. With the Fed's June meeting approaching, the focus now shifts to how soon policymakers may respond to cooling inflation and shifting macro clarity," Mena said in an email to CoinDesk. The CPI report prompted traders to price in 47 basis points of Fed easing, equivalent to roughly two 25 basis point rate cuts, this year, compared to 42 basis points early this week. Further, traders priced fully priced the rate cut for October, with the September probability hovering above 70%. Mena explained that the CPI tailwind comes on the heels of several bullish catalysts, such as sovereign and institutional adoption and the impending stablecoin regulation. "As macro clarity improves, we should see Bitcoin flows accelerate - driven by renewed institutional confidence, increased activity from Bitcoin treasuries, and the continued rollout of state-level Strategic Bitcoin Reserve (SBR) programs. These dynamics could supercharge ETF inflows and reinforce Bitcoin's evolving role in global portfolios. Bitcoin is built for this environment," Mena noted. BTC changed hands at $108,440 at press time, according to CoinDesk data.
Yahoo
20-03-2025
- Business
- Yahoo
Bitcoin tests $90K as Fed holds back on rate cuts
Bitcoin is trading around $84,393.09, up nearly 4% following the Federal Reserve's decision to leave interest rates unchanged and retain its target range of 4.25% to 4.5%. Policymakers did not backtrack on rate cuts, but they did reiterate expectations for two cuts later in 2025 — a mixed signal for risk assets such as Bitcoin. The markets had already predicted very little chance of a rate increase at the FOMC this week, but investors were following economic growth and inflation updates closely. The Fed has also cut its GDP growth forecast to 1.7% for 2025, a 0.4% point drop from its December projections, noting fears of a sluggish economy. Inflation expectations also crept higher, emphasizing the Fed's cautious approach. The Fed has also announced an additional slowdown of its 'quantitative tightening' program, which has steadily been unwinding the central bank's bond holdings. This step signals a more dovish orientation, but analysts say it may not be enough to spark a big rally in Bitcoin. Stocks rose on Wednesday after the Federal Reserve kept interest rates unchanged and reaffirmed its outlook for rate cuts later in 2025. The Dow Jones Industrial Average gained 300 points, up 0.7%, while the S&P 500 climbed 1%. The Nasdaq Composite led the rally, advancing 1.4%. Matt Mena, a crypto research strategist at 21Shares, said, "Declining inflation could prompt the Fed to accelerate rate cuts, which typically provide more liquidity to the market, thereby boosting the prices of Bitcoin and other risk assets." Sign in to access your portfolio
