Bitcoin's All-Time Highs Hinge on US Inflation Slowdown
- Bitcoin needs US inflation to slow down to reach all-time high.
- Analyst predicts new high if inflation is 3.3% or lower.
- Inflows into Bitcoin ETFs expected to remain strong.
- Bitcoin price influenced by CPI results, not random movements.
- Previous instances show Bitcoin price decline after high CPI results.
- Bitcoin up 7.57% in the last 30 days, driven by inflation data.
Summary :
Bitcoin will need to see a slowdown in United States inflation in order to surpass its all-time highs reached in March, according to crypto analyst Markus Thielen. He stated that if inflation prints at 3.3% or lower, Bitcoin should make a new all-time high. The Consumer Price Index (CPI) results, which will be released on June 12, will determine whether Bitcoin can achieve this milestone. Thielen believes that spot Bitcoin exchange-traded funds (ETF) inflows will remain strong in anticipation of the CPI results. However, if the CPI results turn out to be higher than expected, Bitcoin's momentum could weaken, as seen earlier this year. Thielen emphasized that Bitcoin's price is influenced by inflation and there have been instances this year when Bitcoin's price declined following higher-than-expected CPI results. He also noted that the launch of spot Bitcoin ETFs in January saw disappointing inflows due to higher-than-expected CPI results. Overall, Bitcoin's performance in the coming weeks will be closely tied to the CPI results and its impact on inflation.
Sources :
- CoinTelegraph
