Bitcoin experienced an impressive rise, over 5% in 24 hours, surpassing the $85,000 mark.
Impact of U.S. Inflation
The latest Consumer Price Index (CPI) data from the U.S. Labor Department showed a year-on-year drop to 2.8%, falling short of projections. Monthly inflation also declined to 0.2%, substantially lower than January’s 0.5% increase. This shift has bolstered prospects for a more lenient monetary policy from the Fed.
Effect of Russia-Ukraine Talks
Positive reactions to the U.S. and Ukraine’s proposal for a 30-day ceasefire have echoed through the cryptocurrency sector. Polymarket reported a 14% increase in ceasefire probability, leading to a decline in geopolitical risks and a greater appetite for risk across global markets.
Current Market Situation and Prospects
Bitcoin’s price action aligns with derivative market data, suggesting bullish investor sentiment. The total open positions in Bitcoin have exceeded $46 billion, indicating strong long-term expectations. Stable funding rates show no immediate risks from excessive leverage, supporting Bitcoin’s upward trajectory.
With encouraging economic and geopolitical signals, Bitcoin’s momentum shows promising potential for continued growth.
