ETF fever and inflation: why Bitcoin began to rise again
One of the main reasons for the positive dynamics is the US inflation figures for April. They turned out better than expected. The consumer price index (CPI) rose just 0.3% for the month compared to March and 3.4% compared to last year.
The co-founders of the analytical platform Glassnode announced that statistics speak in favor of a friendlier policy by the US Federal Reserve. The road for Bitcoin to $66,000, $69,000, and subsequently $84,000 is open. Well, let's see how it goes. For now, we can only say for sure: BTC has already taken the first barrier of $66,000, but $84,000 is almost $11,000 higher than the historical maximum ($73,794).
Interestingly, Bitcoin's rise has coincided with an increase in the amount of money in spot ETFs. Analytics platform Santiment recorded total volume of $5.65 billion on May 16, the best figure since March 24. Platform analysts subtly note that the days when large players (whales) exclusively accumulated have sunk into oblivion.
From the perspective of technical analysis, we can talk about the end of the correction. This is confirmed not only by the growth on the chart, but also by indicator data. The price is again above the 50-day moving average (indicated in blue), and the RSI is growing and has crossed the 50 mark. Further growth is possible if it overcomes the resistance level in the area of $67,200. The support level is $56,500.
The biggest news for Ethereum was the attack on its blockchain with the subsequent theft of $25 million worth of ETH. Two brothers, Anton Peraire-Bueno and James Pepaire-Bueno, distinguished themselves from the bad side. They were able to carry out their scam in just 12 seconds. Both brothers have already been arrested. They now face up to 20 years in prison.
Obviously, such actions are not a good advertisement for Ethereum, since they showed that with proper preparation, you can withdraw a fairly large amount. And if so, investors and other crypto enthusiasts should have questions about the safety and feasibility of investing in the second cryptocurrency in the world.
