The rise of Bitcoin has been credited to the increasing demand from institutional investors, with many believing it to be a better store of value compared to traditional fiat currencies. This demand has led to a significant increase in the price of Bitcoin, with the cryptocurrency currently trading at over $20,000.
Crypto Bulls Push Market to New Heights
In addition to the influx of institutional investors, crypto bulls are also driving the market higher with their optimistic outlook on the future of digital assets. These bulls believe that with increasing adoption, Bitcoin and other cryptocurrencies may soon become a viable alternative to traditional currency systems.
US CPI Inflation Cools, Impact on Crypto Market
The financial markets are also closely monitoring the Bureau of Labor Statistics’ US Consumer Price Index (CPI) figures. These figures can have a significant impact on the price of crypto assets. Typically, a large deviation in CPI figures causes massive price movement in the cryptocurrency market.
Inflation in the United States is expected to have decreased for the sixth consecutive month, to 6.5% in December 2022 (from 7.1% in November), the lowest level since October 2021. This decrease in inflation, combined with optimism from crypto bulls, has led to a surge in the crypto market.
Bitcoin Price Prediction
Experts predict that if the CPI figures beat analysts’ expectations of 6.5%, cryptocurrency prices may rise even higher. Bitcoin, in particular, could break through an immediate double top resistance level of $18,250 and aim for the next resistance level of $19,000 or $19,450.
On the other hand, lower-than-expected 6.5% CPI figures could lead to a cryptocurrency market sell-off, pushing BTC down to the $17,500 level. However, it’s important to note that the crypto market is highly volatile and predictions may not always come to fruition.
Overall, the crypto market is continuing to gain momentum as institutional investors drive demand and optimism among crypto bulls rises. The outcome of the US CPI figures may have a short-term impact on the market, but the long-term outlook remains positive for digital assets.
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