Bitcoin Bulls Surpass $66K as Positive Inflation News Sparks Short Squeeze
Bitcoin Price Surges Above $66,000 Following Positive Inflation Data
In a remarkable turn of events, the price of Bitcoin has soared past the $66,000 mark, sparking a wave of short liquidations that amounted to over $48 million in a single day. This surge was prompted by encouraging inflation data from the United States, which suggested a potential easing of inflationary pressures.
The Impact of Inflation Data on Bitcoin
New data released on Wednesday revealed that the monthly core Consumer Price Index (CPI) rate increased by 0.3%, with a year-on-year rise of 3.6%. This marked the lowest 12-month core inflation rate since April 2021. These figures indicated a slowdown in inflation, reigniting optimism among Bitcoin investors. As a result, a total of $58 million worth of Bitcoin positions were liquidated.
Inflows and Outflows
Wednesday also witnessed a significant net inflow of over $302 million, with Bitcoin spot exchange-traded funds (ETFs) experiencing their largest daily influx since early May. Fidelity’s FBTC led the way with an impressive $131 million inflow, closely followed by Bitwise Bitcoin ETF (BITB) at $86 million. Ark Invest and 21Shares’ ARKB also attracted $39 million during this frenzy of liquidations.
Bitcoin’s Dominance and Market Cap
Bitcoin’s dominance in the cryptocurrency market surged to 51.9%, while Ether’s dominance dipped to 14.4%. This reshuffling coincided with a 5.5% increase in the global cryptocurrency market cap, which now stands at an impressive $2.51 trillion. Additionally, the GM 30 Index, which comprises the top 30 cryptocurrencies, experienced a surge of 5.45% to reach 133.49.
Bitcoin’s Institutional Appeal
Beyond the numbers, the growing institutional interest in Bitcoin positions it not only as a digital asset but also as a symbol of a new era in investment. With favorable inflation data setting the stage, the cryptocurrency trading landscape has undergone a significant transformation following Bitcoin’s rapid ascent.
What are your thoughts on whether this surge indicates a sustained bull run for Bitcoin?
Tags: Bitcoin, Crypto news