Bitcoin surged past $66,000 early Thursday morning, driven by signs of easing inflation in the U.S., marking a significant uptick in the cryptocurrency market. This notable rise comes as the digital asset experiences a 6.6% increase from the previous day, reaching $66,245.22 at the time of writing. This marks an 8.3% gain from last week, with $82 billion worth of Bitcoin traded over the past 24 hours, according to Coinglass.
The Bureau of Labor Statistics released data on Wednesday showing a decline in consumer prices for the first time in six months, providing a boost to risk-on investors who trade in cryptocurrencies and stocks. The Consumer Price Index (CPI) is a critical metric for the Federal Reserve in determining the trajectory of federal interest rates. The latest CPI data suggests that inflation is starting to cool, increasing the likelihood of a rate cut by the Fed in 2024. Currently, 54% of investors predict a rate cut in September, as indicated by the CME FedWatch Tool, which analyzes data from the federal funds futures market.
The rise in Bitcoin's price has led to a significant liquidation of short positions. Coinglass reported that $49 million worth of Bitcoin short positions were wiped out as the cryptocurrency maintained its upward momentum. The Singapore-based digital asset trading firm, QCP Capital, anticipates this bullish trend to continue. "US CPI numbers triggered a breakout of the range across risk assets. BTC has since traded back above 66k," the firm noted in a blog post. "We expect bullish momentum here that could take us back to the highs of 74k."
The broader cryptocurrency market also saw a spike in liquidations, with over $155 million liquidated in the past 24 hours, the majority being short positions. This surge in Bitcoin's price saw a total of $58 million in liquidated Bitcoin positions. At the time of writing, Bitcoin is trading at approximately $66,300, representing a 6% increase in the past 24 hours, as reported by The Block's price page.
In addition to the price surge, Bitcoin spot ETFs experienced their largest daily inflow since early May, with over $302 million recorded on Wednesday. Fidelity's FBTC led the inflows with $131 million, followed by the Bitwise Bitcoin ETF (BITB) with $86 million, according to SoSoValue data. Ark Invest and 21Shares' ARKB also saw significant inflows, drawing in $39 million. This influx reflects growing investor confidence in Bitcoin and its potential for future gains.
Bitcoin's market dominance has slightly increased to 51.9%, while Ether's dominance has dipped to 14.4%, according to Coingecko data. The global cryptocurrency market cap rose by 5.5% in the past 24 hours, now standing at $2.51 trillion, as per The Block's Prices Page. The GM 30 Index, representing a selection of the top 30 cryptocurrencies, also increased by 5.45% to 133.49 during the same period.
