CPI Data to Trigger Bitcoin Price Rally? Analyst Predicts Surge
Mustafa Mulla11 Sept 20242 min read
As the cryptocurrency markets strive to rebound, Bitcoin ETFs are receiving a significant boost. On September 10th, these ETFs attracted $117 million in inflows, breaking an eight-day streak of low activity.
At the same time, top analyst Michael van de Poppe is predicting a potential surge in Bitcoin’s price, driven by these positive ETF inflows and the upcoming release of the Consumer Price Index (CPI) data.
Could this be the beginning of a new bull run for Bitcoin?
What ETF Inflows Are Telling Us
Crypto analyst Michael van de Poppe highlighted a notable upward movement in Bitcoin’s price, fueled by the substantial inflows into Bitcoin ETFs. A total of $117 million poured into Bitcoin, signaling renewed investor interest.
On the same day, Grayscale’s Bitcoin Mini Trust (BTC) and ARK Invest/21Shares’ Bitcoin ETF (ARKB) experienced significant inflows, with $41.1 million and $12.7 million, respectively. This development has reignited investor optimism, suggesting that Bitcoin may be on the brink of a major price increase.
Market Watch: CPI Data’s Influence on Bitcoin
Van de Poppe pointed out that although Bitcoin surged initially, it faced a small dip during Asian trading hours. Despite this, he believes the ETF news could still drive future gains. The upcoming Consumer Price Index (CPI) report is now seen as a crucial factor in determining Bitcoin’s next move.
The CPI report, a key indicator of inflation, is expected to significantly influence market sentiment. Analysts predict the August CPI data will drop to 2.6%, down from 2.9% in July. If the CPI report delivers a favorable result, it could bolster investor confidence in Bitcoin, potentially leading to a price rally.
Expert Insights
Echoing a bullish stance Benjamin Cowen, CEO of IntoTheCryptoverse, has pointed out that Bitcoin’s current cycle resembles its 2019 performance. He believes that rate cuts by the Federal Reserve could significantly impact Bitcoin’s price.
Cowen noted that Bitcoin might need between 165 and 175 basis points of rate cuts to overcome its current low points. If these rate cuts continue into 2025, they might delay a major price recovery.
This situation mirrors 2019 when Bitcoin initially dropped after rate cuts but eventually bounced back strongly.
Read Also: What is Happening to the Crypto Market? Crypto ETFs Outflow Streak Explained
What do you think? Will Bitcoin soar or stall?
