The Bitcoin (BTC) price has shot up, breaking above $66,000 for the first time in almost two months. This impressive move came after inflation data from the United States showed better-than-expected results, which gave Bitcoin the push it needed.
Lower Inflation Gives Bitcoin a Boost
On Friday, Bitcoin made a key move by breaking past the $65,000 resistance level and taking on the $66,000 right after. From there, it kept climbing, even reaching a high of nearly $66,600—the highest point since July 31.
Bitcoin began its climb early this morning, just under an hour after new inflation numbers were released in the United States. We’re talking about the PCE price index here, which is the Federal Reserve’s go-to measure for inflation.
The numbers were better than many anticipated. The annual inflation rate dropped from 2.5% to 2.2%, hitting the lowest level since 2021. With inflation cooling off, it’s no surprise that Bitcoin found some new energy.
Bitcoin Benefits from China’s Market Rally
There’s another reason Bitcoin is doing so good this week, a massive boost in the Chinese markets. The Chinese government announced a support package worth $114 billion to stimulate the local stock market, and the results were immediate. The CSI 300 index soared 15.7%, making it the best week for Chinese stocks since November 2008.
This rally didn’t just lift Chinese stocks. It had a positive ripple effect on financial assets across the globe. European markets gained momentum, American stocks moved higher, and gold even reached an all-time high. Bitcoin also caught some of this positive wave, climbing towards its previous price record.
Nicholas Yeo, head of Chinese assets at Abrdn, shared his optimism with the Financial Times, stating, “We’re at a critical point for the Chinese economy and its stock markets. The global easing of financial conditions should stimulate consumption, which is a positive sign for China as the world’s largest exporter.”
What’s Next for Bitcoin?
Although Bitcoin has pulled back a little since hitting its peak, it’s still holding above $66,000. The bulls may get a chance to catch their breath in the coming days, as weekend trading tends to be less volatile.
It looks like there’s a strong chance that Bitcoin will end this week in the green. Right now, it’s up nearly 5% since Monday. If Bitcoin manages to pull this off, it would be the third green week in a row—a streak we haven’t seen much this year.
However, there’s still a big test ahead. The next target for Bitcoin lies between $68,000 and $70,000. This is the last major hurdle before we can start talking about reaching the all-time high of nearly $74,000 again.
At time of writing, Bitcoin is sitting comfortably at $66,068.37, according to CoinMarketCap data.
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