Bitcoin Price Surpasses 69400 What is Driving the Surge

Key Points
Bitcoin’s price surged above $69,000 following positive CPI data, boosting the entire cryptocurrency market.
Despite recent outflows from Bitcoin ETFs, on-chain data indicates a bullish sentiment as investors transfer coins off exchanges.
Bitcoin is eyeing the $80,000 mark with strong support around $61,000 in case of a pullback.
Bitcoin’s price skyrocketed past $69,400 on Wednesday, bouncing back from just under $66,000 in the last 24 hours. This significant increase has propelled the entire altcoin market, increasing the total market cap by 3% to approximately $2.65 trillion.
Here’s what’s driving the surge.
Reasons Behind Bitcoin’s Price Surge
Bitcoin’s recent climb above $69,000 coincides with heightened activity from large investors, also known as whales. Despite U.S. spot Bitcoin ETFs experiencing cash outflows of $65 million on Monday and around $200 million on Tuesday, market data indicates a bullish sentiment.
This sentiment is reinforced by decreasing balances on crypto exchanges, with over 14,140 Bitcoins (equivalent to about $954 million) being withdrawn in the past two days.
Bitcoin’s sharp rise on Wednesday also aligns with the release of lower-than-anticipated Consumer Price Index (CPI) data from the U.S. Bureau of Labor Statistics.
This development has led crypto traders to speculate on potential interest rate cuts by the Federal Reserve, possibly following the actions of the European Central Bank (ECB) and the Bank of Canada.
Aiming for $80,000
Bitcoin has made multiple attempts to surpass $73,000 recently without success. Nevertheless, the coin has garnered strong bullish sentiment, increasing the likelihood of a surge towards $80,000.
The possibility of Bitcoin reaching $85,000 and then $110,000 remains viable, with the recent events seemingly designed to shake out weak holders.
In the event of a bullish rejection, Bitcoin’s price has established a robust support level above $61,000, which could serve as a buffer until buyers regain control.
Predictions and Speculations
Where do you anticipate Bitcoin’s price heading next? Are you expecting a bullish or bearish trend? Share your thoughts with us!
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