Bitcoin price jumps to $66,000 and is poised for further gains
Bitcoin price jumps to $66,000 and is poised for further gains
A report released by the US Labor Department on May 15 showed that the core consumer price index rose 0.3% in April compared to March. The result was lower than analysts' expectations of 0.4%, which could indicate the beginning of a downward trend in inflation and strengthen hopes for a possible interest rate cut by the Federal Reserve System (FRS).
This information was positively received by the crypto community and influenced the digital asset market. The price of Bitcoin (BTC) jumped to $66,000, an increase of about 7% in the last 24 hours. Other major cryptocurrencies have also risen, with Ethereum (ETH) up 4.4% and Solana (SOL) up 12.3%.
At the time of writing, BTC is trading at $65,948.
At the same time, experts note that, in addition to lower inflation, other factors have also influenced the recent growth of Bitcoin, BeInCrypto reported.
CryptoQuant experts believe that the key factor in the growth of cryptocurrency prices was the reduction of selling pressure.
"The decrease in selling pressure is evident from the fact that short-term Bitcoin holders are selling with minimal profits and traders are withdrawing their unrealized profits from the past few months," they explained.
However, trading volumes in spot Bitcoin ETFs have reached a two-month high in recent days.
Network data provider Santiment reported a significant increase in Bitcoin ETF trading volumes on its X site. The seven largest Bitcoin ETFs saw a combined trading volume of $5.65 billion in a single day. This indicates a significant increase in investor interest in cryptocurrency investment vehicles.
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However, CryptoQuant stressed that further growth in demand is necessary for the sustainable growth of cryptocurrencies.
In addition, a number of experts point out that Bitcoin is still undervalued in terms of profitability for miners after halving in April 2024.
However, despite the encouraging news, Fed officials emphasized that the US central bank needs more data to make sure that inflation is steadily declining before lowering interest rates.
Despite this statement, cryptocurrency market participants remain optimistic about Bitcoin's long-term prospects.
Prominent trader Peter Brandt stated that the price of Bitcoin is on the verge of reaching an all-time high.
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