US CPI Inflation Drops To 2.3%, Bitcoin Price To Hit ATH Soon?
Highlights
- Crypto analyst Jelle predicted that the Bitcoin price would hit all-time highs soon.
- This prediction came following the US inflation data, which dropped to 2.3%, lower than expectations.
- FedWatch data shows that traders are still betting a rate cut at the next FOMC meeting.
The Bitcoin price has received a massive boost following the release of the US CPI inflation data. The latest data shows that inflation in the US is cooling off, a development which is bullish for risk assets like BTC. In line with this, crypto analyst Jelle has predicted that the flagship crypto could soon reach its all-time high (ATH).
Bitcoin Price Eyes ATH As US CPI Inflation Drops To 2.3%
In an X post, Jelle affirmed that the Bitcoin price could rally to its current ATH and hit a new one soon. The analyst alluded to the latest US CPI inflation data as the reason for the bullish outlook for the leading crypto.
He remarked that the CPI just hit its lowest in four years and that the economy is strong. As such, he believes it’s time for risk assets, including BTC, to enjoy further rallies to the upside. Indeed, the US Bureau of Labor Statistics data shows that the CPI dropped to 2.3% year-on-year, lower than market expectations of 2.4%. Inflation also fell to 0.3% month-on-month, lower than expectations of 0.3%.
This latest inflation data comes just days after Jerome Powell and the Fed left interest rates unchanged following the May FOMC meeting. This data further strengthens the case for a Fed rate cut with inflation cooling off.
However, traders are still betting against a rate cut at the June and July FOMC meetings and expect the first cut to come in September. A rate cut is bullish for the Bitcoin price, since it usually attracts more capital into the flagship crypto.
The Next Major Move Will Follow The Breakout
In an X post, crypto analyst Titan of Crypto stated that the next move for BTC will follow the breakout. For now, the analyst noted that the Fair Value Gap (FVG) is acting as support for BTC just as expected. His accompanying chart showed that this FVG is just above the $100,000 level.
The analyst had earlier warned that Bitcoin could drop below $100,000 to revisit the Tenkan, which is currently at $99,500. Meanwhile, crypto analyst Rekt Capital also predicts that BTC could soon break out to new all-time highs.
The Bitcoin price has followed a roadmap he outlined in an earlier analysis. The latest price action was the hold above the $97,000 to $99,000 range as support. With BTC holding well above these levels, the next step in the roadmap is for the flagship crypto to reach a new ATH.
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