TL;DR

Despite a recent dip below $67,000, industry participants remain optimistic about Bitcoins potential resurgence and future gains. Upcoming US CPI data and the FOMC meeting could significantly impact BTCs price, with analysts expecting possible upward movement.

The Optimistic Scenarios

The price of Bitcoin (BTC) rallied to almost $72,000 earlier this month, allowing some industry participants to speculate that a new all-time high could be just around the corner. Instead of a fresh peak, though, the asset headed south in the past several hours, dipping below the $67,000 mark and hurting over-leveraged traders.

BTC Price, Source: CoinGecko However, numerous analysts remain optimistic that the negative trend is a momentary event that might soon be replaced by another resurgence. The X user Mags claimed that BTC has been forming a descending broadening wedge pattern, which often leads to an explosive move on the breakout.

Crypto Rover—an X user with almost 800,000 followers—was even more bullish. He reminded that the US SEC has already approved spot BTC and spot ETH ETFs, predicting that crypto is going only up from here. The analyst went even further, setting the staggering target of $500,000 for a single BTC sometime in the near future.

Shortly after his bold forecast, Crypto Rover presented a chart showing that retail investors are yet to jump on the bandwagon, while FOMO (Fear of Missing Out) is at a relatively low level. According to him, this means that the bull market has not even started.

Earlier this month, the market intelligence platform Santiment shared a similar pattern, signaling that euphoria among traders is still far from its peak zones observed in previous bull cycles. In the context of crypto, FOMO refers to the fear of missing out on potential investment gains in a particular digital asset that has been performing quite well.

The phenomenon can cause investors to enter the ecosystem emotionally rather than rationally. People may ignore vital due diligence and investment strategies, leading to impulsive buys at high prices. This, in turn, could propel crucial losses in the event of a severe market correction.

FOMO levels were notably high in 2021, when BTC jumped to almost $70,000 for the first time in its history. However, the jolly was short-lived, with the whole industry entering a devastating bear market in 2022.

These Events Can Become Game Changers

Another analyst who delved into the matter is Michael van de Poppe. He noted BTCs downfall after being rejected at the $71K area, expecting a further plunge toward the $64,000-$65,000 range.

On the other hand, the crypto enthusiast believes the asset will head north once again following the upcoming US CPI data and FOMC meeting.

The US Bureau of Labor Statistics is set to release the latest Consumer Price Index on June 12, while the Federal Open Market Committee meeting (which decides whether interest rates in America should be raised, lowered, or kept at the same level) is scheduled for the same date.

Both events have historically triggered enhanced volatility for the leading digital asset and the entire cryptocurrency sector.

Most experts believe that interest rates will remain unchanged at their current 5.25-5.50% benchmark. Prominent names, including Mike Novogratz (CEO of Galaxy Digital Holdings), think BTC will head north once the Fed pivots from its anti-inflationary regime. 

Such a move would make money borrowing easier, which might translate into increased interest in risk-on assets such as cryptocurrencies.