Sign Up on MEXC
Highlights
- Bitcoin price rises to $104,357 following the US CPI data released on Tuesday, with strong spot volume and tight consolidation range at multi-month peaks.
- US CPI data shows 2.1% annual rise, the lowest since February 2021, raising expectations of Fed rate cuts.
- Derivatives markets reflect clear long bias, as open interest increases and short positions face large-scale liquidations.
Bitcoin price surges above $104K as April CPI cools to 2.3%, boosting Fed rate-cut bets and fueling bullish market sentiment.
Bitcoin Rises Above $104K as Inflation Cools
Bitcoin moved sharply higher on Monday after the release of April’s US Consumer Price Index (CPI). According to TradingEconomics data, US Consumer Price Index (CPI) increased to 320.80 points in April from 319.8 points in March of 2025.
The annual inflation rate in the US eased to 2.3% in April 2025, the lowest since February 2021, from 2.4% in March and below forecasts of 2.4%.
Notably, annual inflation, which showed a year-over-year increase of just 2.1% attracted investors attention, as it reflected lowest increase in inflation recorded since 2021. This reinforces market expectations for a Federal Reserve policy rate cut during the next FOMC meeting.
Within two hours of the data release, BTC rose 2.9 % to $104,771 at press time, after plunging as low as $101,868 on Monday.
The move was accompanied by a 35% increase in Bitcoin spot volumes on Binance’s BTC/USDT pair.
TradFi market response was also visible as shares of Coinbase Global (COIN) gained 5.3% in pre-market trading to $215, reflecting positive sentiment building up around cryptocurrency-related stocks. S&P 500 futures also advanced 1.1% to 5,300, reflecting a synchronised recovery across global risk asset markets.
$68.6 billion BTC open interest re-inforces bullish dominances
BTC’s price action was supported by a decisive shift in derivatives markets, reflecting increasing bullish conviction from traders.
Open interest in Bitcoin futures rose by 2.38% to $68.57 billion. Options open interest increased by 2.50% to $39.89 billion.
On Binance, the top trader long/short ratio reached 1.595. The broader market ratio stood at 0.9724, reflecting a clear directional tilt to the upside.
Liquidations trends recorded over the last 24 hours also confirm this bullish shift in short-term momentum. Since the CPI release, $84.61 million in leveraged positions were cleared.
Short positions accounted for $28.27 million of that total, with 81% of short liquidations occurring in the first hour. The CPI data caught a large portion of the market unhedged.
On the flip side, futures trading volume declined by 13.71% to $104.67 billion. Options volume also decreased by 9.64%.
This indicates that while bullish positions have been established, short-term traders are now cautiously watching for further macro confirmation before increasing leverage exposure further.
Looking Ahead: BTC Eyes $110,000 as Rate Cut Bets Firm Up
The combination of easing inflation, rising open interest, and strong spot demand points to a continued advance for Bitcoin.
Attention will now turn to upcoming comments from Federal Reserve Chair Jerome Powell and the release of FOMC minutes. Clarity on the central bank’s stance will be critical to validating the market’s current rate cut expectations.
For now, Bitcoin is benefiting from macro relief, rising trading volumes, and increasing capital inflows all currently align positively for BTC sustain its upward momentum towards new all time highs around $110,000.
Bitcoin Technical Price Analysis: Bulls Eye $110K as RSI Holds Firm and Volume Delta Rebounds
In today’s Bitcoin price forecast, the confluence of expanding Bollinger Bands, positive volume delta, and elevated RSI supports a bullish outlook toward the $110,000 mark.
As seen in the TradingView chart below, Bitcoin is trading at $104,560 after surging nearly 18% over the past 12-hour session, signalling revived bullish momentum following a consolidation phase.
More so, BTC price has cleanly broken above the mid-$100K range, with sustained closes above both the Bollinger Basis Band ($100,182) and the upper Envelope Band ($100,614), suggesting strong directional conviction.
The Bollinger Band width is expanding, often a precursor to volatile upside movement, as candles hover near the upper band at $108,439, reinforcing bullish continuation potential.
Momentum strength is further confirmed by the RSI holding at 72.52, marginally above the 70 threshold that typically delineates overbought conditions.
However, the RSI’s sustained elevation without divergence hints at trend strength rather than exhaustion, especially as the RSI line maintains a gradual upward slope above its signal.
Notably, the recent positive Volume Delta spike to +1.27K marks the highest buyer dominance since early May, underscoring renewed spot demand.
Downside risks remain capped so long as BTC holds above the psychological $100,000 support, which aligns with both mid-band support and historical resistance now turned support. A clean break below $100,000 with weakening volume could re-open bids toward $92,850.
Frequently Asked Questions (FAQs)
1. Why did Bitcoin rise above $104,000?
2. How does inflation data affect Bitcoin price?
3. What is the next target for Bitcoin price?
- Forward Industries Launches $4B Program to Boost Solana Holdings as Analyst Eyes $500 SOL
- Expert Identifies Bullish DOGE Flag as CleanCore Treasury Tops $160M With Fresh Purchase
- Breaking: Bitcoin Proxy Metaplanet Announces New US, Japan Subsidiaries As Stock Slumps
- Will Bitcoin Reclaim $120K as Options Bulls Target $125K Highs Post-FOMC?
- Sharps Technology Announce Plans to Stake Treasury in BONK, Analyst Projects Parabolic Rally
- XRP Price Prediction as Market Longs Hit 78% amid VivoPower Treasury Expansion Launch — Is $4 Next?
- SHIB Price Forecast: Taker Buys Lead as Developers Counter Shibarium Exploit
- Solana Price Set for a 25% Jump as Open Interest Nears a $20 Billion Milestone
- Bitcoin Price Prediction as Fed Decision Nears — Dump Before the Next Rally?
- Ethereum Price Prediction As Standard Chartered Says Treasury Buying Will Boost ETH Over Rivals
