Why is Bitcoin Up Today?
Bitcoin’s price is up 7.6% today in response to favorable macroeconomic data — but how long will BTC’s gains continue?
Bitcoin’s price is up on Feb. 16th as a combination of factors has sent it to a six-month high! BTC hit $24,895 today — its best price since August 2022.
The bulls are back in town
Bitcoin bulls are patting themselves on the back this week as the world’s largest cryptocurrency puts in an impressive return to form after weeks of consolidation.
Macroeconomic tailwinds in the US, have arrived alongside improving sentiment across risk assets, giving optimists the edge.
The gains coincide with a key week of U.S. macroeconomic data prints, suggesting inflation has peaked.
A bullish CPI print
The positive news began with a Consumer Price Index (CPI) that matched expectations.
CPI has become a major volatility catalyst for both stocks and crypto, that have become increasingly intertwined.
Despite a lack of initial reaction, markets have now reacted as expected to the good news.
Retail sales and manufacturing numbers further improved the outlook, with investors emboldened to send crypto higher still.
The news isn’t over yet
More key data is still to come, a hot Jobless Report could boost Bitcoin further still.
If U.S. unemployment data comes in above expectations, we could see investors anticipate this as evidence that the Fed’s economic policy is working, and that the worst of the downturn is over.
If this translates to The Fed lowering interest rates, traders are anticipating the rally will continue further skyward.
As always, this article does not constitute financial advice. You should be sure to research and consult a professional financial advisor before making a major investment decision.
To stay up to date on all things crypto, like Xcoins on Facebook, and follow us on Twitter, Instagram, and LinkedIn.