Bitcoin Surges Towards $25K on CPI Predictions Experts Expect
Bitcoin is again on an upward trajectory, nearing the $25,000 mark just before Christmas day. This rally comes as institutional investors and analysts begin to place bets on the impact that the US Consumer Price Index (CPI) will have on the cryptocurrency market.
The CPI is a key economic indicator that measures inflation in the US economy. Inflation can significantly affect the prices of assets such as stocks, real estate, and cryptocurrencies. Analysts have been closely watching the CPI data in recent months to anticipate how it will impact the cryptocurrency market.
The CPI data released on December 10th showed that inflation had risen 6.8% year-over-year, the highest level over 30 years. This news caused a brief dip in the Bitcoin price, as investors worried about the impact of inflation on the cryptocurrency market.
However, over the past week, Bitcoin has rebounded and is approaching the $25,000 mark. Some analysts believe this rally results from investors and institutions placing bets that Bitcoin will act as a hedge against inflation.
One factor driving this institutional interest in Bitcoin is the limited supply of the cryptocurrency. Bitcoin has a fixed supply of 21 million coins, making it a scarce commodity.
As inflation drives down the purchasing power of traditional currencies like the US dollar, investors may turn to Bitcoin to preserve their wealth.
There are also technical factors driving the recent Bitcoin rally. The cryptocurrency has broken through key resistance levels and is trading at its highest price since early November. If Bitcoin can continue this upward momentum, it could be on track to surpass its all-time high of $64,000, which it reached earlier this year.
Bitcoin BTC fell $24,823 on March 14 as the market awaits important economic data from the US.
We hope that CPI will bring the “integration” of Bitcoin.
Data from Markets Pro and TradingView show that BTC/USD hit a monthly high of $24,917 overnight on Bitstamp.
The pair continued to perform well after the crypto market rose after multiple US bank shutdowns.
Currently, when it comes to BTC’s short-term price performance, the February consumer price index (CPI) has been the focus for a while.
The CPI, a classic crypto volatility catalyst in itself, has shown an undesirable slowdown in inflation over the past month. This raised concerns that the Federal Reserve would hold rates on hold for longer.
But risk assets had little time to worry as the banking crisis overshadowed the inflation debate. Earlier that day, expectations had already been set that the Fed would abandon rate hikes altogether, regardless of CPI movements.
Contributor to Cointelegraph, founder, and CEO of the trading company eight, Mikael van de Poppe, told his followers on Twitter,
“Bitcoin is testing highs at $25,000, so we’re going to hit highs here.” Updating.
Overall, the Bitcoin market remains volatile, and the impact of inflation on the cryptocurrency market is still uncertain. However, many investors believe that Bitcoin has the potential to act as a hedge against inflation, which could drive up the demand for the cryptocurrency in the coming months.