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Bitcoin (BTC) has experienced its most significant single-day gain in nearly two months, following the release of the US Consumer Price Index (CPI) data on Wednesday.
This surge pushed BTC past $66,252, fueled by expectations of a potential easing of monetary policy by the Federal Reserve and a positive outlook for risk assets, including cryptocurrencies.
End of BTC downtrend?
The latest CPI data reveals a 3.4% increase over the 12 months ending in April, slightly lower than March’s 3.5% rise.
This indicates a slowdown in price growth, aligning with expectations for a gradual easing of inflationary pressures in the coming months.
The impact of the CPI news has rippled through various asset classes, including Bitcoin, which broke above the $66,000 resistance level following the data release.
This breakout is viewed as a crucial moment, potentially signaling the end of the summer correction and paving the way for further rallies toward new all-time highs.
Analysts weigh in on Bitcoin breakout
Renowned crypto analysts have offered insights into Bitcoin’s recent surge and future trajectory.
In a recent tweet, analyst Rekt Capital suggested that the Bitcoin downtrend might be ending after the latest breakout, noting decreased selling pressure with Bitcoin hovering around the $60,000 support level.
#BTC
Bitcoin has successfully turned the old major resistance into a new major support$BTC #BitcoinHalving #Bitcoin https://t.co/mPcmqOG4oy pic.twitter.com/DZeS8krWbw— Rekt Capital (@rektcapital) May 16, 2024
He emphasized that maintaining support at $60,000 is crucial, and the surge to $66,000 could mark the start of a push toward new record highs.
Similarly, crypto expert Peter Brandt is optimistic about Bitcoin’s upward trajectory.
He predicts that Bitcoin is headed for new record levels but stresses the need for a strong breakout above $67,000 to confirm this upward trend.
BTC price outlook
As Bitcoin’s price continues to climb, the insights from these analysts provide valuable perspectives for investors navigating the crypto market.
The recent surge in Bitcoin, coupled with the easing inflation data, suggests a more favorable environment for cryptocurrencies in the coming months.
Investors will be closely watching the market’s movements and the Federal Reserve’s policy decisions, which could further influence Bitcoin’s trajectory.
The post Bitcoin surges past $66k as inflation concerns ease, is it the end of BTC downtrend? appeared first on Invezz
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