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The Bitcoin price rose beyond $66,000 today. Why?
Bitcoin crossed $66,000 for the first time since April. The flagship crypto's recent price increase may be attributable to numerous causes, including inflation statistics.
Lower-than-expected inflation data
The May 15 CPI inflation figure was lower than predicted. In April, the CPI climbed 0.3% vs 0.4% estimates. The CPI was lower than in March and February, when inflation reached 0.4%.
The latest inflation data implies a slowdown in US inflation. Investors are relieved because the Fed is expected to remain dovish and decrease rates as inflation falls. Bitcoin investors will feel more confidence with lower interest rates.
Recent rumors that prominent institutions are significantly involved in Bitcoin have also helped the crypto rise. Wisconsin invested about $99 million in BlackRock's Spot Bitcoin ETF, according to Bitcoinist. Millenium Management has $1.94 billion in five Spot Bitcoin ETFs.
The fact that institutional investors are interested in Bitcoin long-term is optimistic for Bitcoin. Rekt Capital said that Bitcoin was out of the post-halving “Danger Zone,” preparing it for this bounce.
Crypto expert Mikybull Crypto said Bitcoin's weekly chart showed a cup and reverse pattern and that the “breakout will be explosive and will send it to a cycle top.”
Bitcoin: What Next?
In a Telegram post, crypto trading company QCP Capital predicted that this bullish trend will push Bitcoin above $74,000. They said futures market activity and institutional demand might drive Bitcoin's price up.
They also said that “the stars seem to be aligning on this breakout with significant sovereign and institutional adoption, abating inflation and upcoming US elections” to restart the bull market. The trading business said, “If this is indeed the start of the bull trend again, then this move could take us past all-time highs.”
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