Why is Bitcoin price up today?
price rallied to $69,483 after the Wall Street open on June 12, as markets reacted to the Consumer Price Index (CPI) data and its implications for potential interest rate cuts in 2024.
Data from Cointelegraph Markets Pro and Coinbase shows that the BTC price rose 2% within an hour, adding $1,760 to its value as the May CPI print came in cooler than expected.
BTC/USD hourly chart. Source: TradingView
Bitcoin rallies on cooler-than-expected CPI data
Bitcoin price reacted to the May CPI reading, which remained flat, missing economist forecasts for a 0.1% rise and down from 0.3% in April, according to data from the U.S. Bureau of Labor Statistics (BLS). The year-on-year rate was 3.3%, also 0.1 pp lower than forecast.
According to BLS’ official release, “the index for shelter rose in May, up 0.4 percent for the fourth consecutive month,” offsetting a decline in gasoline.
CPI 12-month percentage change chart. Source: U.S. Bureau of Labor Statistics
Immediately after the CPI data was released, market participants began debating whether the Federal Reserve would lower interest rates in 2024.
According to the CME’s FedWatch tool, traders anticipate five or six 25 basis point (bps) cuts in this year. This had shrunk to one or two before today’s CPI reading, with the first cut not expected until September.
Fed target rate probabilities for Sept. 18. Source: CME Group
The Kobeissi Letter reacted to the CPI data release, saying that the markets have officially priced in two interest rate cuts this year.
On whether the Fed is likely to begin cutting interest rates, the global capital markets analysis company noted,
“The odds of no cuts have fallen from 33% to 24% over the last few minutes, according to @Kalshi. Meanwhile, market-implied odds of exactly 2 rate cuts have spiked from 21% to 35%.”
Bitcoin short liquidations surge
BTC’s rise above the $69,000 mark has caused a spike in the liquidation of crypto-leveraged positions.
Crypto investor Crypto_0x spotted BTC trading at $69,434, saying, “The abrupt pullback resulted in over $250 million in liquidations of leveraged derivatives trading positions across all cryptocurrency assets.”
Data from Coinglass shows that over the last 24 hours, $101 million worth of long crypto positions were liquidated, compared to $86 million worth of short liquidations.
Approximately $16.34 million of Bitcoin shorts were liquidated in the last four hours alone, against only $2.1 million long positions.
Total crypto liquidations heatmap. Source: Coinglass
The largest single liquidation order happened on OKX for the ETH/USDT pair valued at $5.21 million.
Traders expect Bitcoin’s bullish price action to continue, leading the wider market into the much-awaited bull run.
Related: Bitcoin braces for CPI, FOMC as exchanges shed $1.2B of BTC in a day
Traders say rare indicator shows Bitcoin price still bullish
Independent analyst Moustache shared Bitcoin’s weekly chart, showing that the Bollinger Band Width Percentile (BBWP) indicator had sent a rare signal.
Derived from the Bollinger Band Width indicator, the BBWP shows the percentage of bars over a specified lookback period.
Moustache explained that this is the first time in the history of Bitcoin that the indicator “shows 4 blue bars.”
“We’re talking about a volatility indicator here, which means: The more bars, the more volatility we can expect.”
BTC/USD weekly chart. Source: Moustache
According to the analyst, the price remains bullish as long as BTC stays above the 20-week exponential moving average (EMA).
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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Circle announces Solana programmable wallets, gas station
Circle is adding support to the Solana blockchain, enabling integration across its Web3 features in two phases.
Circle is rolling out support for the Solana blockchain across its Web3 services, enabling features such as programmable wallets and gas stations.
The integration will take place in two phases. According to an announcement on June 12, the first phase will focus on programmable wallets — allowing developers to automatically manage assets based on predefined rules — and sponsored transaction fees via its gas station feature.
The second stage will include support for non-fungible tokens (NFTs) and program interactions through Smart Contract Platform, said Circle. The move will align Solana with other blockchains already supported by Circle’s Web3 services, such as Ethereum, Polygon and Avalanche.
Programmable Wallets can be configured to interact with smart contracts automatically. This means that tasks typically requiring manual execution, such as executing transactions when certain conditions are met, can be automated.
Other companies focusing on programmability for wallets on Solana include Fuse Wallet, as per an announcement on June 10. Based on smart accounts, the wallet supports programmability and promises to solve dependence on seed phrases, limited options for asset recovery, and restricted customization of rules and parameters for onchain interactions.
Over the past months, Solana has seen an increase in activity and several integrations with other protocols. The number of active addresses on the Solana blockchain reached its all-time high in May at 41.5 million, according to Hello Moon.
“The Solana developer community has witnessed remarkable growth,” Circle said about the reasons to support the blockchain.
To keep up with the growing demand, the network has been preparing for major improvements, including the Firedancer upgrade slated for 2025. This upgrade promised to enhance Solana’s scalability and eliminate the network’s downtime. In a recent outage, Solana was down for nearly five hours.
“One thing is there’s a big focus for us on getting Firedancer live,” said Solana Foundation’s DePIN lead, Kuleen Nimkar, in a recent interview with Cointelegraph. Solana’s independent validator client is being developed with Jump Crypto.
PayPal was one of the latest companies to support Solana’s ecosystem. The fintech company integrated its stablecoin, PayPal USD
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Disclaimer: The information contained on this widget is not intended as, and shall not be understood or construed as legal, tax, investment, financial, or other advice. Nothing contained on this widget constitutes a solicitation, recommendation, endorsement, or offer by Cointelegraph or any third party service provider to buy or sell any cryptoassets or other financial instruments.
We advise you to spend only what you can afford to lose, and always seek independent financial advice if you are in doubt. You should not purchase any cryptoassets if you do not fully understand the nature of your purchase and the risks involved. We recommend that you refer to the issuer’s/ advertiser’s t&c and help/ support pages for more information.
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