Bitcoin (BTC) news: Prices pressured by Fed uncertainty, oil, and AI slowdown

Bitcoin (BTC) is experiencing price pressure due to uncertainty surrounding the Federal Reserve's interest rate decisions, elevated oil prices, and a potential slowdown in AI demand. Market maker Enflux notes that traders are hesitant to push bitcoin higher ahead of key economic data releases, including GDP, PCE inflation, and the Employment Cost Index, which will influence expectations for potential Fed rate cuts in the latter half of the year. High Brent crude prices above $100 are complicating the inflation outlook, making a dovish signal from the Fed less likely. The market is operating under the assumption that geopolitical tensions will ease but not quickly enough to impact near-term policy, effectively pricing out June rate cuts. Bitcoin has struggled to break key technical levels, trading below its short-term holder cost basis. Looking ahead, a slowdown in AI demand, as suggested by OpenAI missing revenue targets, could impact Bitcoin mining companies that have pivoted to AI data centers. While this might eventually reduce miner selling, the immediate effect could be negative due to broader tech and risk appetite declines, reinforcing the current market uncertainty.

(Source：CoinDesk)