*WHY #BTC IS PUMPING SOO HARD*
The recent surge in Bitcoin's price can be attributed to several key factors:
1. **Lower-than-Expected CPI Data**: The Consumer Price Index (CPI) report for April showed lower inflation than anticipated, which boosted investor confidence and sparked hopes of potential Federal Reserve rate cuts later in the yeară8â sourceă.
2. **Federal Reserve's Dovish Signals**: The Federal Reserve indicated a more dovish stance, signaling possible rate cuts in 2024. This dovish sentiment has been a significant driver, as lower interest rates generally increase liquidity, benefiting assets like Bitcoină10â sourceă.
3. **Increased Institutional Inflows**: There has been a notable increase in institutional investment, particularly into spot Bitcoin ETFs, which saw significant inflows. This institutional interest is seen as a strong bullish indicator for Bitcoină9â sourceă.
4. **Technical Indicators**: Bitcoin breached key resistance levels and showed positive technical signals, such as a bullish RSI recovery and support from moving averages. These technical movements have reinforced the bullish sentiment among tradersă8â sourceăă10â sourceă.
These combined factors have contributed to the recent pump in Bitcoin's price, driving it to new highs.