Wednesday’s softer than expected US inflation has probably set the scene for accelerated gains in Bitcoin
potentially to $ 200,000 at the end of the year, according to Matt Mena, Crypto Research Strategist on 21Shares.
“If BTC breaks out of the $ 105K-$ 110K series with conviction, we could see a sharp step to $ 120k and, more importantly, reach our goal for the year’s end of $ 138.5k in late summer,” Mena told Coindesk in an email.
“Today’s CPI printing can act as a bullish catalyst for Bitcoin – and it could be the unlocking that brings this goal by several months. If Momentum continues to build, a $ 200K Bitcoin is now stuck in games,” MENA added.
21Shares is one of the world’s first and largest issuers of Crypto Exchange-Traded Products (ETPS),
The report from the Labor Department released Wednesday showed that the cost of living, measured by the consumer price index (CPI), increased 0.1% last month after increasing 0.2% in April. Economists examined by Reuters had predicted an increase of 0.2%.
In particular, CPI fell for durable items, most of which are imported or manufactured with imported content, with a seasonal 0.1% month to month (-1.3% annually), indicating that President Donald Trump’s duty has not yet been fully transferred to the final consumer.
The annual CPI advanced 2.4%, with core inflation matched the pace in April by 2.8%.
“This continued trend of refrigeration is strengthening the case for potential policy that eased later in the year. With Fed’s June meeting, the focus is now changing how quickly decision makers can respond to refrigeration and changing macro -clarity,” Mena said in an e email to Coindesk.
The CPI report caused the traders to the price in 47 basic points for bold -laying, corresponding to approx. Two 25 Basic Point Points, this year, compared to 42 basic points early this week. Furthermore, merchant priced price reduction for October, when the September -probability hovers over 70%.
Mena explained that the CPI tail winds are coming to the heels of several bullish catalysts, such as superb and institutional adoption and the impending stableecoin regulation.
“Efterhånden som makroklariteten forbedres, bør vi se Bitcoin -strømme accelerere – drevet af fornyet institutionel tillid, øget aktivitet fra Bitcoin Treasuries, og den fortsatte udrulning af statsniveau Strategic Bitcoin Reserve (SBR) -programmer. Disse dynamik kunne supercharge ETF -tilstrømning og forstærke Bitcoin’s udviklende rolle i Global Portfolios.
BTC changed hands on $ 108,440 at the press time according to Coindesk data.
