Bitcoin Price: Will Softer CPI Send BTC To $70,000 In May?

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As a seasoned crypto investor with a background in economics, I’m encouraged by the recent CPI report indicating that inflation is easing again in the US. This news has the potential to boost risk assets, including Bitcoin, as investors regain confidence and recoup losses from the past few months.

This week, the Bureau of Labor Statistics unveiled the Consumer Price Index (CPI) findings, revealing that inflation in the United States is decelerating once more. Based on the data disclosed, the inflation rate increased at a slower pace in April, up by 0.3% compared to 0.4% in March. Economists had predicted a 0.4% rise for the month-over-month period. Meanwhile, Bitcoin‘s price demonstrated resilience between the $60,000 support and resistance of $64,000 for nearly two weeks, ultimately surpassing the $65,000 mark.

Bitcoin Price Analysis As Inflation Eases

As a crypto investor, I’ve noticed that the bitcoin price has been stuck in a tight range between $60,000 and $64,000 for some time now. Lately, however, there have been efforts to push the price above the psychological level of $65,000 during daily trading sessions. The reason behind the lack of clear direction in the market was mainly due to investors taking a cautious stance, with growing uncertainties surrounding potential regulations and geopolitical tensions being the primary concerns.

Despite inflation causing a halt to the upward trend in April, risk assets may now have the opportunity to regain the losses they suffered since then.

Based on the Consumer Price Index data, inflation increased by a predicted 3.4% annual rate in March, although it came in slightly under the anticipated 3.5%.

As a crypto investor, I’d interpret this data as follows: The Core Consumer Price Index (CPI), which excludes food and energy prices, rose by 0.3% in line with experts’ predictions of a 3.6% increase. This figure mirrored the 0.4% growth recorded in March. On an annual basis, however, the Core CPI experienced a decrease to 3.6%, representing a slight dip from the previous month’s 3.8%.

The volume of Bitcoin ETFs has recently been skewed towards outflows, but this trend may be shifting as inflation rates ease in the United States, the world’s largest economy.

Based on SoSoValue’s findings, ETFs amassed more than $100 million in daily net inflows, accounting for a substantial portion of the total cumulative net inflow volume of approximately $11.84 billion. However, it is important to note that Grayscale experienced significant outflows, with a daily net inflow figure of -$51 million over the recent weeks.

On May 14, Ark Invest topped the list of the highest performing ETFs with a total of $133 million in assets under management. Next was Fidelity with $8 million, and Invesco rounded out the top three with $6 million.

Bitcoin Price: Will Softer CPI Send BTC To $70,000 In May?

Can Bitcoin Climb To $70,000 In March?

As a researcher studying the cryptocurrency market, I can tell you that Bitcoin is once again regaining bullish momentum. Buyers are fiercely contending for control of the market, with their sights set on reaching $70,000 by June. Currently, Bitcoin has surpassed all three short-term indicators of a bull market: the 20-day Exponential Moving Average (EMA), the 50-day EMA, and the 100-day EMA. These are represented by the blue, red, and purple lines on the chart, respectively.

Bitcoin Price: Will Softer CPI Send BTC To $70,000 In May?

The bitcoin price surge is supported by the Relative Strength Index (RSI), which has moved into the overbought zone at 72. If this trend continues for the RSI, it’s likely that Bitcoin will bridge the gap to hit $70,000 within the coming two weeks based on trader expectations.

Over the coming sessions, Bitcoin’s price development is pivotal. Maintaining a foothold above the red line, or $64,000, will provide buyers with the opportunity to plan their approach to reaching $70,000.

As a crypto investor, I’ve noticed that if Bitcoin drops below its current level, it might give sellers the confidence to drive prices down towards $60,000 once more. However, optimistically speaking, Bitcoin price predictions indicate that it will surge past $100,000 at some point, signaling the bull run following the 2024 halving event.

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2024-05-15 19:54