This is the scenario that can help Bitcoin reach a new ATH
Amid a widespread cryptocurrency market correction with the majority of tokens in the top 100 in the red, one potential scenario for Bitcoin to rally to a new all-time high is inflation. in the United States must slow down.
“If inflation is at 3.3% or lower, Bitcoin will reach a new all-time high,” Markus Thielen of 10x Research stated before the U.S. Bureau of Labor Statistics (BLS) released the Index data consumer prices (CPI) on June 12.
This represents a decrease of 0.1 percentage points from the previous CPI result, which was at 3.4% on May 15. Thielen believes that in the two weeks before the May CPI results were released, the Capital exposure to spot Bitcoin ETFs will “ remain strong .”
However, if CPI results are stronger than expected, momentum could weaken, as seen earlier this year.
Over the past two weeks, since May 13, inflows into spot Bitcoin ETFs have been quite positive, with the highest total inflow on May 21 at $305.7 million.
Thielen argues that there are no “random” fluctuations in Bitcoin price; it all comes down to important drivers, with the main driver being inflation.
There have been several instances throughout this year when Bitcoin prices dropped following higher-than-expected CPI results.
On April 10, CPI was announced at 3.5%, only 0.1% higher than expected. Just a few weeks later on April 30, Bitcoin price dropped 6.67% to $56,000.
