Bitcoin recently reached a significant milestone as its price soared above $66,000 due to several macroeconomic conditions and changes in investor sentiment. In this article, we examine the causes of this impressive rise and discuss its broader impact on the crypto market.
Economic indicators drive Bitcoin’s rise
The new dynamism in the Bitcoin market is particularly helped by core inflation falling to a three-year low of 3.4%, as shown by the latest US Consumer Price Index data.
Assets like Bitcoin act as a hedge against economic uncertainty and have historically been favored by investors during periods of low inflation.
“Investors consider this a bullish regime change as it marks the first decline in CPI inflation in the past three months,” Bitfinex analysts explained.
Additionally, slowing inflation signals the possibility of lower interest rates in the United States, further increasing investor confidence in risk assets. Even if the Fed maintains a cautious approach, changes in economic indicators will likely accelerate the adjustment schedule.
Market reaction and expert analysis
Up 7% in just 24 hours, Wednesday's market rally pushed Bitcoin above the $66,000 level and to its highest level since April 24.
“Bitcoin is finally making a big move” in a break from the downward trend of recent weeks, Swissbloc analysts said. Referring to CPI and retail sales figures, the analysts further exclaimed: Today we got it. ”
Along with Bitcoin, altcoins such as Solana and NEAR also showed significant gains, and a strong recovery was seen across the cryptocurrency market. A bullish outlook is seen across the market, with predictions that Bitcoin could target the $84,000 level.
Significant social support praised Bitcoin's technological breakthrough.
Celebrities like Andrew Tate have declared: Their money is already spent. “The scam is over,” he said, announcing his intention to move his large fiat currency holdings to Bitcoin.
