Recently, Bitcoin briefly climbed above $122,000, heightening traders' interest in a potential record breakout. The anticipation of inflation data has also influenced market sentiments.
Technical and Historical Tailwinds
After trading sideways around $115,000 for much of the previous week, a golden cross has reignited bullish sentiment. Some analysts predict a possible rise to $130,000 in the near term. Market strategist Benjamin Cowen notes that in every post-halving year to date, Bitcoin has strengthened through late summer before reaching new peaks in the final quarter.
Macro Forces in Play
The anticipated increase in inflation has also bolstered Bitcoin's narrative as a safe-haven asset. Traditional markets are bracing for the possibility of more aggressive monetary easing. Currently, betting markets assign a 40% chance for two rate cuts totaling 50 basis points at the September Federal Reserve meeting.
Outlook for Bitcoin
As the week unfolds, the results from CPI and PPI could determine whether Bitcoin merely tests its previous record or breaks through it, setting the stage for an aggressive rally into the year's final stretch.
Bitcoin continues to attract investor interest against the backdrop of rising inflation expectations and potential changes in monetary policy, which may influence its price movements in the future.
