After the release of the U.S. Consumer Price Index (CPI) data, Bitcoin's price climbed back above $100,000, with traders predicting increased volatility during next week’s FOMC meeting.
After consolidating around $96,000 for a while, Bitcoin's price has made a strong rebound, rising 3.5% in the past 24 hours and breaking through $101,000. Market sentiment is high following the release of U.S. CPI inflation data on Wednesday. Therefore, as the FOMC meeting approaches next week, market analysts are hopeful that BTC will reach an all-time high.
Will the FOMC meeting be a bullish catalyst for Bitcoin's price?
The U.S. CPI inflation report released on Wednesday has sparked optimism in the U.S. stock market and the global cryptocurrency market. With CPI data meeting expectations, investors are hopeful for a moderate 25 basis point rate cut during next week’s FOMC meeting.
Experts estimate the likelihood of interest rate cuts at 96-97%, which could become a catalyst for economic prosperity in the U.S. and globally. Given the strong correlation between the cryptocurrency and stock markets, Bitcoin's price has quickly surged above $100,000.
During Bitcoin's consolidation around $96,000, BTC whales have accumulated a significant amount. According to cryptocurrency analyst Ali Martinez, as Bitcoin's price fell from $104,000 to $90,000, the number of wallets holding over 100 BTC reached 342. Data indicates that large investors are seizing the opportunity to accumulate Bitcoin at lower prices.
On the other hand, over the past week, the inflow of funds into spot Bitcoin ETFs has also maintained a good pace. In the past nine trading days, U.S. Bitcoin ETFs have all recorded net positive inflows, with BlackRock's Bitcoin ETF (IBIT) reaching a new high in net inflows since its inception, exceeding $35 billion.
Cryptocurrency analyst Ali Martinez has made a bold prediction for Bitcoin, forecasting that the price could rise to $275,000. Martinez's target is based on the formation of a 'cup and handle' pattern. The analyst advises investors to 'buy on dips' but warns against over-leveraging.
What will be the next development after BTC's recent breakout?
According to 10x Research, after the U.S. inflation data met expectations, Bitcoin's price surged into the trading range of $94,500 to $98,000.
Analysts point out that because stable data often alleviates market concerns about soaring inflation, Bitcoin's price typically rebounds after a drop before the inflation report is released. Although Bitcoin's price may continue to rise before the end of the year, 10x Research expects limited market volatility as many investors settle their accounts post-FOMC meeting.
However, the report noted that altcoins are showing a stronger relative advantage than Bitcoin. Even today, there has been a strong surge in the altcoin sector, with Ethereum's price increasing by more than 7%, currently trading at the critical resistance level of $3,920. XRP, BNB, SOL, and DOGE all recorded slight gains of 4-5%.
