Bitcoin Price Touches $63,000 Ahead of US Inflation Reading

Bitcoin Price Touches $63,000 Ahead of US Inflation Reading

Bitcoin (BTC) increased by 2.80% in the last 24 hours, reaching $63,098, ahead of US macroeconomic data to be released this week. Federal Reserve chairman Jerome Powell’s remarks could create a volatile mix for risk assets and could have significant impacts on Bitcoin and crypto markets.

In addition to these market dynamics, all eyes turned to macroeconomic developments in the USA this week. The CPI statement, which will be published on May 15, will shed light on the inflation debate and the possibility of interest rate cuts. Additionally, Federal Reserve Chairman Jerome Powell’s remarks on the economy will be closely scrutinized for clues about future policy moves.

Bitcoin’s ability to hold above the $60,000 region is considered very important for the short-term outlook. While analysts are cautious about losing this level, they warn that there may be a return to previous low levels. Conversely, if BTC can hold above $60,000, it could pave the way for more gains towards $64,000 to $67,000.

Meanwhile, long-term Bitcoin holders (LTHs) are increasing their exposure to the cryptocurrency, mirroring the behavior observed in the 2021 bull market. On-chain data shows that LTH organizations are accumulating coins at current low prices and intend to reintroduce them to the market during periods of excitement. This trend suggests a cyclical pattern in which long-term holders buy during bear markets and sell during bull markets, contributing to the increasing share of Bitcoin held by these institutions.