Bitcoin (BTC) appeared to be on track to challenge range highs on July 13 as new macroeconomic data gave a boost to risk asset bulls. The BTC price focus shifted above $30,500, according to data from Cointelegraph Markets Pro and TradingView. The United States Producer Price Index (PPI) numbers released on that day came in lower than expected, further supporting diminishing inflation forecasts. Despite this, the market remained convinced that another interest rate hike was likely, as indicated by CME Group’s FedWatch Tool, which showed bets on a 0.25% increase standing at nearly 95% at the time of writing.
Caleb Franzen, senior market analyst at Cubic Analytics, noted that declining inflation had played a significant role in the BTC price rebound throughout this year. He stated, “Quite literally, everything is pointing to more disinflation in the months & quarters ahead (even if energy rallies from here). Core CPI is going to decelerate so fast, people will be shocked.” Franzen further explained that the upward momentum in asset prices, including Bitcoin’s 86% year-to-date increase, could be attributed to disinflation.
Optimism Surrounding Bitcoin and European Bitcoin ETF
Despite the market’s cautious optimism, Bitcoin’s sentiment remained positive. In addition to the PPI data, it was announced that Europe would soon see its first Bitcoin spot exchange-traded fund (ETF) launch. Michaël van de Poppe, founder and CEO of trading firm Eight, expressed hope for a breakout in the near future. He stated, “Bitcoin holds $30,200 and most likely will start looking at range high again. Another test and we’ll have a swift breakout to $38K.” However, van de Poppe also mentioned a downside target of $29,300 if the support at $30,000 failed to hold.
Other traders, including Skew, suggested that although the range remained unchanged, a return to the trend was not far off. Fellow trader Jelle observed a triangle formation just below the “key” resistance level of $31,000.
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In summary, Bitcoin’s potential for range highs was amplified by positive macroeconomic data and diminishing inflation forecasts. The market remained confident in the likelihood of another interest rate hike, despite the lower-than-expected PPI numbers. Bitcoin’s sentiment remained optimistic, fueled by the announcement of Europe’s first Bitcoin spot ETF. Traders anticipated a breakout and a potential return to the upward trend. Collecting this article as an NFT would serve as a commemoration of this significant moment in history.