bitcoin recently rose above $66,000 for the first time since April. This recent price rally for the flagship cryptocurrency is believed to be due to several factors, including recently released inflation data.
Inflation data is lower than expectations
He Consumer Price Index (CPI) Inflation data was announced on May 15 and was lower than expected. The CPI increased 0.3% in April, compared to forecasts of 0.4%. The CPI data was also lower than those recorded in March and February, when inflation rose 0.4%.
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Therefore, the latest inflation data suggests that inflation in the US could be slowing. This development has crypto-funds-interest-rate/” rel=”nofollow”>provided some relief to investors, as the Federal Reserve is likely to maintain a dovish stance and consider rate cuts as inflation appears to ease. Lower interest rates mean investors will be more confident investing in risky assets like bitcoin.
Another factor contributing to bitcoin's rally is recent reports showing that some notable institutions are investing heavily in the flagship cryptocurrency. Bitcoinist bitcoin-etf-secures-99m-investment/#:~:text=The%20latest%20development%20reveals%20that,BlackRock’s%20iShares%20Bitcoin%20Trust%20ETF.” rel=”nofollow”>reported that the state of Wisconsin has invested almost $99 million in BlackRock's Spot bitcoin ETF. Hedge Fund Millenium Management is also reported to own $1.94 billion in five different bitcoin Spot ETF products.
This presents a bullish outlook for bitcoin as it suggests that institutional investors are interested in the crypto token for the long term. Meanwhile, from a technical analysis perspective, bitcoin also seemed primed for this rally, according to crypto analyst Rekt Capital. bitcoin-price-left-danger-zone/” rel=”nofollow”>developer that the flagship cryptocurrency was out of the post-Halving “Danger Zone.”
crypto Analyst Mikybull crypto He also noted that bitcoin was showing a cup and reversal pattern on the weekly chart and added that the “breakout will be explosive and will send it to the top of the cycle.”
What's next for bitcoin?
In a Telegram update, bitcoin-plunge-nearly-430-m-lost-in-24-hours/” rel=”nofollow”>cryptocurrency trading company QCP Capital stated that they expect this bullish momentum to bring the price of bitcoin to the level bitcoin-breaks-through-69000-setting-new-record/” rel=”nofollow”>previous highs of $74,000. They highlighted activity in the derivatives market and growing institutional demand as factors that could contribute to bitcoin's rise at this price level.
They also raised the possibility that it could be the resumption of the bitcoin-bull-market-glassnode/” rel=”nofollow”>bull marketstating that “the stars appear to be aligning on this break with significant sovereign and institutional adoption, reducing inflation and crypto-politics-cardano-founder/” rel=”nofollow”>upcoming US elections.” The trading firm added: “If this is indeed the beginning of the uptrend again, then this move could take us above all-time highs.”
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Rekt Capital suggested that this could be the start of an uptrend for the flagship cryptocurrency, as x.com/rektcapital/status/1790812076459319672″ rel=”nofollow”>revealed that he daily downtrend for bitcoin it's over. In other x.com/rektcapital/status/1790815106080575663″ rel=”nofollow”>x publicationThe crypto analyst also noted that the bitcoin bull market is not over yet.
Chart by Tradingview.com
