Bitcoin Uptrend Unfazed By Hot Inflation Data: $60K Could Be Next
In the last few weeks, we saw the drawn-out correction in Bitcoin and its main rival, Ethereum, come to an end.
The robust momentum propelled the demand side to breach the psychological barrier of $50,000 per Bitcoin, despite a temporary slowdown triggered by hotter-than-expected US inflation data.
The current session reflects the dominance of buyers, unaffected even by the strengthening US dollar. This scenario suggests the development of a sustained bull market, driven by the upcoming halving and increased funds flowing into ETFs.
In this ongoing bull market, not only Bitcoin but also other major cryptocurrencies, led by Ethereum, have reached new highs for the year.
The recently released US inflation data indicates that the Federal Reserve cannot yet declare victory. Both key CPI readings exceeded forecasts, highlighting a de facto consolidation that has persisted more or less since last July.
The dynamics of services prices, which rose by 0.7% month-on-month, contribute to the persistence of above-target inflation.
This factor discourages the Fed from initiating quick interest rate cuts, especially given relatively strong GDP readings and historical experiences from the 1970s.
Consequently, the likelihood of rate cuts as early as March is practically ruled out, with the market now shifting its probability assessment to June.
Conversely, the data on food prices appears optimistic, with the latest reading indicating a 1.2% year-on-year increase, the lowest since June 2021.
Additionally, fuel prices, particularly gasoline (down 14.2% year-on-year) and crude oil (down 6.4% year-on-year), have seen declines.
Bitcoin has already surpassed the $50,000 mark. As anticipated, ETFs reflecting the spot price of Bitcoin are
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