Bitcoin (BTC) appeared poised to challenge its range highs on July 13 after fresh macroeconomic data provided a boost to risk asset bulls. The market’s attention shifted to the BTC price as it crossed $30,500.
The United States Producer Price Index (PPI) numbers were released, and they once again fell below expectations, resulting in further reduction of inflation forecasts. Despite this data, the market remained convinced that the Federal Reserve would announce another interest rate hike. In fact, according to CME Group’s FedWatch Tool, there was a nearly 95% chance of a 0.25% hike.
Caleb Franzen, a senior market analyst at Cubic Analytics, noted that the declining inflation had a direct impact on the rebound of the BTC price throughout the year. He explained that the decreasing inflation had contributed to the upward momentum of various asset prices, including Bitcoin.
Meanwhile, the sentiment surrounding Bitcoin itself was more optimistic. Alongside the PPI data, news surfaced that Europe would soon see its first Bitcoin spot exchange-traded fund (ETF) launch. Michaël van de Poppe, founder and CEO of trading firm Eight, expressed hope for a breakout in the near future. He predicted that if Bitcoin maintained its hold above $30,200, it would likely retest the range highs and potentially surge to $38,000.
Other traders, such as Skew and Jelle, also recognized the potential for a major move in Bitcoin’s price. Skew highlighted the consolidation phase that Bitcoin had been going through for the past two weeks, noting that the market seemed ready for a significant shift. Jelle observed a triangle formation just below the key resistance level of $31,000, signaling a potential breakout.
This positive sentiment came amid increasing interest in cryptocurrencies and their potential as investment assets. It also highlighted the ongoing efforts to bring more traditional financial products, such as ETFs, into the crypto space.
It’s worth noting that this article does not contain any investment advice or recommendations. All investment and trading decisions involve risks, and readers are advised to do their own research and analysis before making any decisions.
In conclusion, Bitcoin’s price showed signs of challenging its range highs amidst fresh macroeconomic data and increasing optimism in the market. The declining inflation and the potential launch of a Bitcoin ETF in Europe contributed to the positive sentiment surrounding the cryptocurrency. Traders and analysts anticipated a potential breakout and a major move in Bitcoin’s price in the near future. However, as with any investment, readers are advised to conduct their own research and assess the risks involved.