ANALYSIS: Bitcoin Hits Weekly Lows, June Data May Provide Breakout Opportunity

The price of bitcoin (BTC) fluctuated between $67,000 and $69,000 in the days following the Memorial Day holiday in the U.S., but fell close to its weekly low in Friday's morning trading session. As of 11:45 a.m. EST, Bitcoin was trading at $67,300, down 1 percent over the past 24 hours and more than 2 percent from its high two hours earlier. Nonetheless, May remains a strong month for Bitcoin, up 11% since the beginning of the month at $60,000. Other risky assets such as U.S. equities also underperformed this week. The Nasdaq is down about 2% and the SP 500 is down about 1.5%. On the economic data front, the core PCE price index rose 2.8% year-over-year in April, in line with expectations. the Chicago PMI fell to 35.4 in May, a new low since the 2008/2009 financial crisis and the 2020 Covid blockade. Looking ahead to June, next week's national PMI report and jobs report are expected to provide more clarity on the U.S. economy. If it confirms that economic conditions are slowing and brings with it the prospect of lower interest rates, it could be the catalyst for Bitcoin to break above the $73,000 all-time high it hit in March. Otherwise, strong economic data could cause Bitcoin to retest its May lows.