Close this search box.

Bitcoin Hits $66,000 Amid Positive Inflation Trends

Bitcoin has achieved a notable milestone early Thursday morning, soaring past the $66,000 mark. This represents a 6.6% increase since yesterday and an 8.3% rise over the past week, with the current price standing at $66,245.22. Over the last 24 hours, approximately $82 billion in Bitcoin has been traded, reflecting significant market activity as per data from Coinglass.

The surge in Bitcoin’s value is closely tied to recent economic indicators from the U.S. that suggest a softening in inflation pressures. According to the latest report from the Bureau of Labor Statistics released on Wednesday, consumer prices have dropped for the first time in six months. This development is particularly favorable for risk-on investors, who typically engage in more speculative assets like cryptocurrencies and stocks.

Inflation trends are a crucial consideration for the Federal Reserve, especially when determining adjustments to federal interest rates. The Consumer Price Index (CPI), a key gauge of inflation, showed improvements that may influence the Fed to consider rate cuts in 2024. Presently, the CME FedWatch Tool indicates that 54% of investors anticipate a likely rate reduction by the Fed in September. This tool assesses the expectations based on futures in the federal funds market, providing insights into investor sentiment regarding future rate changes.

Additionally, there’s a significant focus on the Bitcoin futures market. Coinglass reports a considerable accumulation of long-standing short positions, which face potential liquidation if Bitcoin continues its upward trajectory and surpasses $66,900. In fact, in the past 24 hours, short positions worth around $49 million have been liquidated as Bitcoin’s price ascended.

QCP Capital, a Singapore-based digital asset trading firm, remains optimistic about Bitcoin’s trajectory. Following the U.S. CPI announcement, they noted a breakout in Bitcoin’s price, propelling it back above the $66k mark. “US CPI numbers triggered a break out of the range across risk assets. BTC has since traded back above 66k,” stated QCP Capital in a recent blog post. They forecast continued bullish momentum, potentially driving Bitcoin to revisit its previous highs around $74,000.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Bullish Times is a marketing agency committed to providing corporate-grade press coverage and shall not be liable for any loss or damage arising from reliance on this information. Readers should perform their own research and due diligence before engaging in any financial activities.

Leave a Reply

Your email address will not be published. Required fields are marked *