Bitcoin
Bitcoin Bulls Charge Over $66K on Positive Inflation News, Triggers Short Squeeze
Bitcoin surpassed the $66,000 mark, triggering a frenzy of short liquidations totaling more than $48 million in just one day. This increase followed positive data on inflation in the US, suggesting a potential relief from inflationary pressures.
The impact of inflation data on Bitcoin
New data on Wednesday revealed a slight increase in the monthly core CPI rate by 0.3%, along with an annual rise of 3.6%, marking the lowest 12-month core inflation rate since April 2021. These Numbers suggested a slowdown in inflation, reigniting bullish sentiment around Bitcoin and resulting in the liquidation of a total of $58 million worth of Bitcoin positions.
Inputs and Outputs
Wednesday saw significant net inflow of over $302 million, with Bitcoin spot ETFs experiencing their largest daily inflow since early May. Fidelity’s FBTC led the charge with an impressive $131 million inflow, followed closely by Bitwise Bitcoin ETF (BITB) with $86 million. 21Shares’ Ark Invest and ARKB also attracted $39 million in this liquidation frenzy.
Bitcoin’s dominance rose to 51.9%, while Ether’s dominance fell to 14.4%. This reorganization coincided with a 5.5% increase in the global cryptocurrency market capitalization, which now stands at $2.51 billion. The GM 30 Index, which comprises the top 30 cryptocurrencies, also rose 5.45% to 133.49.
Bitcoin’s Institutional Appeal
With favorable inflation data setting the stage, the cryptocurrency trading landscape has undergone a significant change following Bitcoin’s rapid rise. However, beyond the numbers, the growing institutional interest in Bitcoin positions it not just as a digital asset, but as a symbol of a new era in investing.
Do you think this is a sign of a sustained run for Bitcoin?