Bitcoin Surges Past $66,000; Investors Eye Further Gains

0 0
Read Time:1 Minute

The Impact of Inflation Data on Bitcoin’s Surge

Bitcoin experienced a notable surge, exceeding $66,000 in value early on a Thursday morning, marking a 6.6% increase from the previous day. Presently, the price of Bitcoin stands at $66,245.22, showing an 8.3% climb from the previous week. The recent trading activity has seen $82 billion worth of BTC transactions, as reported by Coinglass.

Influence of Inflation Data

The positive momentum in Bitcoin’s value can be attributed to indications of easing inflation in the U.S. Recent data released by the Bureau of Labor Statistics suggests a decrease in consumer prices for the first time in six months. This development is particularly encouraging for investors who engage in trading cryptocurrency and stocks, as it reflects a favorable environment for risk-on investment strategies. The trajectory of inflation, as measured by the Consumer Price Index, plays a crucial role in the Federal Reserve’s decision-making process regarding adjustments in interest rates. Consequently, with the improvement in inflation indicators, there is a growing likelihood of a rate decrease by the Fed in 2024.

Market Sentiment and Expectations

According to data from the CME FedWatch Tool, a significant portion of investors, around 54%, anticipate a rate cut by the Federal Reserve in September. The tool analyzes the federal funds futures market to gauge investor sentiment and predict potential changes in the Federal Open Market Committee’s target rate.

Long-standing Short Positions and Market Dynamics

A notable observation made by Coinglass highlights a substantial accumulation of short positions that could face liquidation if Bitcoin sustains its upward trajectory and reaches the $66,900 mark. Already, the market has witnessed the liquidation of $49 million worth of Bitcoin short positions amidst the cryptocurrency’s surge in value over the past 24 hours.

QCP Capital, a digital asset trading firm based in Singapore, expressed optimism regarding the ongoing market trend. In a recent blog post, the firm projected continued bullish momentum in Bitcoin’s value.

“US CPI numbers triggered a break out of the range across risk assets. BTC has since traded back above 66k,” the firm stated. “We expect bullish momentum here that could take us back to the highs of 74k.”

Image/Photo credit: source url

About Post Author

Chris Jones

Hey there! 👋 I'm Chris, 34 yo from Toronto (CA), I'm a journalist with a PhD in journalism and mass communication. For 5 years, I worked for some local publications as an envoy and reporter. Today, I work as 'content publisher' for InformOverload. 📰🌐 Passionate about global news, I cover a wide range of topics including technology, business, healthcare, sports, finance, and more. If you want to know more or interact with me, visit my social channels, or send me a message.
Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %