Bitcoin price surpassed $65,000 again at the time of writing. We mentioned on Sunday that volatility would increase following today’s data release. Indeed, it happened, and a good day began for cryptocurrencies. So, what is the reason for the rise?
Why is Bitcoin Rising?
Today, the US April inflation data was released and came in at the expected level. The inflation figure from the previous month fell below both the core and headline levels. The possibility of the Fed failing on inflation as the US economy weakens was worrying investors. This also brought the risk of more interest rate hikes and the possibility that rates would not be cut this year.
However, today’s data showed that the Fed is not in such a bad situation when combined with the easing in the employment front and the weakening in wage growth data. Therefore, the Bitcoin price exceeded $65,000. If spot Bitcoin ETF volumes remain strong and we see a significant net inflow, it is likely that Bitcoin will make new attempts above $67,000 tomorrow. Comments from Fed members expected later could also support the price increase. Additionally, the 13F forms submitted to the SEC showing more institutional investors holding BTC ETFs than expected are also motivating.
