The post Bitcoin Price Prediction: BTC Flashes to $38K as Lower CPI Data Fuels Rally appeared on BitcoinEthereumNews.com.

The Bitcoin price has rallied more than 5% over the last 24 hours to trade at $37,460 as of 2:30 a.m. EST. After Tuesday’s sell-off which saw BTC drop as low as $34,770, bulls took charge on Wednesday producing the largest daily candlestick since Oct. 23 as the Bitcoin price climbed to brush shoulders with $38,000. The Wednesday rally was fueled by a drop in the U.S. dollar index (DXY) and treasuries which took some pressure off risk assets. This came after the latest inflation data cooled expectations of additional interest rates from the Federal Reserve, encouraging traders to re-enter the market. The U.S. consumer price index (CPI) data came in as a surprise to the downside, missing on both headline CPI (4% vs 4.1% expected) and core CPI (3.2% vs 3.3% expexcted). For digital assets like BTC, this is good news since it is a non-interest-bearing asset. As such, the higher interest rates are, the greater the opportunity cost to owning BTC is. According to data from Coinglass, a crypto futures and information platform, longs suffered the worst of this week’s volatility, with nearly $110 million worth of long positions liquidated during the pullback on Tuesday as compared to $18.8 million worth of liquidated short positions. The current bullishness in the crypto market is evidence that interest in the asset class continues to rise, with both institutional players as well as retail traders starting to increase their level of involvement particularly on the hopes of a spot Bitcoin ETF being approved in the near term. The Bitcoin halving, which is anticipated to occur in April 2024, is also seen as a driving force behind the current bullish momentum. Crypto trader and investor going by the name Titan of Crypto on X said, “Make no mistake about it, the halving…

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Filed under: News - @ November 18, 2023 11:24 am