Bitcoin is holding around $119,000, influenced by positive US inflation data.
Inflation Data and Impact on Bitcoin
The Producer Price Index (PPI) data in the US showed a 2.3% increase year-on-year, which is lower than expected. This indicates declining inflationary pressure, potentially supporting risk assets such as Bitcoin. Analysts noted, "Inflation is cooling again."
Market Liquidity Analysis
Market participants noted the potential for fresh liquidity grabs on Bitcoin, particularly at levels between $119,500 and $120,500. This includes futures markets, where price gaps traditionally attract the price towards them.
Overall Trends in Bitcoin Market
According to CME Group data, current market sentiment does not indicate a review of Federal Reserve rates at the upcoming meeting. Analysts suggest that inflationary pressures remain non-critical, despite fluctuations in oil prices.
The analysis indicates that current inflation and liquidity data create positive expectations for Bitcoin, though the market remains influenced by various economic factors.
