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The global crypto market has seen a strong rise, with Bitcoin leading the charge. In the past 24 hours, the global crypto market capitalization has risen by about 2.3%, reaching $2.06 trillion. Bitcoin’s price surged to $58,281, fueled by a combination of positive economic news and growing interest in Bitcoin-related products.
U.S. CPI Data Drop to 2.5%
A key factor driving Bitcoin’s price increase is the latest Consumer Price Index (CPI) report from the U.S. Bureau of Labor Statistics. The CPI inflation rate dropped to 2.5% in August, down from 2.9% in July. This was below the expected figure of 2.6%, showing inflation is easing..
Core CPI inflation, which excludes volatile items like food and energy, also fell to 3.2%. This lower inflation can lead to more interest in Bitcoin, as it is often seen as protection against rising prices.
Spot Bitcoin ETF Inflows Continue
Another driving force behind Bitcoin’s rise is the growing inflow into spot Bitcoin exchange-traded funds (ETFs). According to blockchain analytics platform Lookonchain, the 10 Bitcoin ETFs recorded inflows of $44.32 million on September 11.
Sept 11 Update:10 #Bitcoin ETFsNetFlow: +771 $BTC(+$44.32M)#Fidelity inflows 1,093 $BTC($62.82M) and currently holds 172,717 $BTC($9.93B).9 #Ethereum ETFsNetFlow: -1,591 $ETH(-$3.72M)#Grayscale(ETHE) outflows 9,752 $ETH($22.77M) and currently holds 1,750,498… pic.twitter.com/LK0JqvDk79
— Lookonchain (@lookonchain) September 11, 2024
Leading the charge was Fidelity’s FBTC with $12.57 million, followed by ARK 21 and Invesco’s BTCO. This steady demand for Bitcoin ETFs signals growing confidence in the asset.
Bitcoin Mining Difficulty Hits ATH
Bitcoin’s mining difficulty also reached a new all-time high, climbing 3.6% to 92.67 trillion. This rise in mining difficulty indicates a stronger network, which can positively impact Bitcoin’s price as it boosts security and investor confidence.
Bitcoin Technical Analysis
From a technical perspective, Bitcoin found solid support around the $56,000 level earlier this week and has gained 3% over the past few days. After surpassing the $57,022 resistance level, Bitcoin saw a 3.4% surge following the CPI report, pushing its price to $58,309.
Bitcoin is now poised to test its 50-day and 200-day exponential moving averages (EMA) near $59,500. A breakout above this level could propel Bitcoin toward $63,500 in the coming weeks. With inflation slowing and more interest in Bitcoin, the cryptocurrency may continue to rise.
