Thu 13 Jun 2024 ▪
3
min of reading ▪ by
The crypto market experienced a spectacular surge this Wednesday, and the price of Bitcoin once again surpassed the symbolic mark of $69,000. This rapid rise followed the release of U.S. inflation data, which was lower than expected.
After its recent drop, Bitcoin has crossed the symbolic mark of $69,000 again, marking a significant increase following the release of the latest inflation data in the United States. The Consumer Price Index (CPI) report revealed an annual increase of 3.3% in May, slightly lower than economists’ expectations of 3.4%. This lower-than-expected figure was positively received by investors, fueling a wave of buying in the cryptocurrency market. As a result, Bitcoin recorded an increase of more than 3% within 24 hours, reaching a peak of $69,300.
This surge led to massive liquidations of short positions, totaling $28 million, and $48 million of Bitcoin positions liquidated in total, according to Coinglass data.
The influence of institutional investors and monetary policies on Bitcoin
As institutional investors show growing interest, market data reveals a downward trend in Bitcoin balances on exchanges, with more than 14,000 Bitcoins withdrawn over the past two days. This accumulation by the market’s “whales” strengthens the bullish sentiment, despite the massive outflows observed in U.S. spot Bitcoin ETFs. This strategic move by large investors suggests confidence in Bitcoin’s resilience to current economic fluctuations.
Concurrently, expectations of rate cuts by the U.S. Federal Reserve add another dimension to this dynamic. The monetary decisions of other major economies, such as the European Central Bank and the Bank of Canada, which have already started to lower their key rates, weaken the U.S. dollar and create a favorable environment for Bitcoin. The prospect of global monetary easing could support a new phase of increase, potentially beyond the $80,000 mark.
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Diplômé de Sciences Po Toulouse et titulaire d’une certification consultant blockchain délivrée par Alyra, j’ai rejoint l’aventure Cointribune en 2019.
Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l’économie, j’ai pris l’engagement de sensibiliser et d’informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu’elle offre. Je m’efforce chaque jour de fournir une analyse objective de l’actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
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The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
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