Bitcoin Price Soars to $65,150 Amid CPI Data and Speculations of 2024 Rate Cuts
Summary:
On May 15, Bitcoin's (BTC) price surged to $65,150, reacting to the Consumer Price Index data and speculations of possible interest rate cuts in 2024. This increase was also spurred by positive inflows into the spot Bitcoin exchange-traded funds (ETFs), contributing to a growing optimism among investors. Bitcoin breached the resistance at the 50-day exponential moving average, signaling bullish trends on multiple timeframes. Several analysts highlighted these patterns, predicting an upward trajectory for the BTC price.
In the wake of the Wall Street opening on May 15, Bitcoin (BTC), swelled to a top of $65,150. This was driven by market responses to the Consumer Price Index (CPI) data, and the speculation of possible interest rate reductions in 2024. According to data from Cointelegraph Markets Pro and TradingView, BTC's rate soared by 6.61% from $61,299 to an intraday peak of $65,129 on May 15.
There are several reasons behind Bitcoin's rising price today, including a CPI figure that didn't rise as much as anticipated, which reinforced investor belief. The BTC price responded to the CPI for April, which came in at 0.3%, lower than predictions, states data from the U.S. Bureau of Labor Statistics (BLS). The year-on-year percentage increased to 3.2%, against estimates and March's figures, both at 0.4%.
The BLS official report identified climbing shelter and gasoline costs as contributing to over 70% of the monthly rise in the item index. Once the CPI data was revealed, market stakeholders started discussing whether the Federal Reserve might decrease rates in 2024.
CME’s FedWatch tool suggests that traders are predicting a 3.1% rate reduction in June, at the time of writing. This indicates market stakeholders think that the U.S. central bank will maintain rates during June and July, with the first likely cut anticipated in September at around 53%.
The Kobeissi Letter divulged information on CPI data, reporting that inflation fell to 3.4%, marking the first dip in CPI inflation in three months. On the prospect of the Federal Reserve reducing interest rates, the account revealed that the Federal Reserve will "stay in a wait-and-see stance."
Positive gains into the spot Bitcoin ETFs are also creating a positive feeling among investors. The U.S. spot Bitcoin ETFs recorded a daily net inflow of $100.5 million on May 14, with ARK 21Shares’ Bitcoin ETF (ARKB) logging the biggest gains of the day, outdoing the usual outflows from the Grayscale Bitcoin Trust.
Farside Investors' data suggests around $133.1 million flowed into ARKB, pushing its cumulative net inflow to $2.28 billion. In contrast, GBTC saw another $50.9 million flow away from the product, increasing its cumulative net outflows to $17.68 billion.
Approximately $11.84 billion in cumulative net inflows have been seen in U.S. spot Bitcoin ETFs so far. However, data from The Block indicates that spot Bitcoin ETF flow volumes have consistently fallen since peaking on March 5.
In related updates, the State of Wisconsin Investment Board revealed it holds close to $164 million in spot Bitcoin ETFs. This illustrates a growing institutional drive for Bitcoin investment products, which looks positive for BTC prices.
Bitcoin demonstrated bullish indicators across various time frames in its latest rally, breaking the resistance at the 50-day exponential moving average (EMA) of $63,352. A daily candlestick finish above this could indicate that bulls are ready for increased levels. The RSI's swift bounce back from 45 on May 14 to its current position at 54 implies the recovery is gathering pace.
Bitcoin's price also turned the 200-day EMA back to support in a four-hour timeframe. Analyst Crypto Daan Trades stressed this likelihood in a previous post, stating that once things turned, there was a "strong likelihood that this would trigger some low/mid timeframe trend up after so many rejections."
Analyst Ali Martinez spotted that the TD Sequential indicator gave a buy signal on BTC's hourly chart and could be possibly followed by a "price rebound." Analyst and trader Moustache showed a chart in which the Stochastic RSI indicator had created a bullish cross in the weekly timeframe.
The analyst explained that with this cross, Bitcoin was duplicating "what it has done in previous cycles." "Biggest move ahead. Good night bears."
This article does not offer investment advice or suggestions. Every investment and trading maneuver carries risk, and readers need to do their own investigations when making choices.
Published At
5/15/2024 9:11:35 PM
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