Bitcoin has broken a significant psychological barrier, surging past $100,500 after the release of the U.S. CPI report showing lower-than-expected core inflation. This price jump is not only due to macroeconomic data but also reflects a sharp rise in open interest on Binance.
CPI Data Release as a Catalyst for Bitcoin's Rise
The U.S. Consumer Price Index report has become a crucial metric for crypto markets. The latest release indicated decreased inflation, reducing the pressure on the Federal Reserve to raise interest rates. This scenario makes Bitcoin a more attractive asset amid a cooling inflation environment.
Binance Open Interest Spike
Post-CPI data saw a sharp increase in Bitcoin's open interest on Binance, amounting to $500 million, indicating heightened activity in Bitcoin futures. This surge reflects bullish sentiment among traders, pointing towards a potential upward market trend.
Impact of Lower Inflation on Bitcoin's Appeal
Lower core inflation not only reduces rate hike fears but also strengthens Bitcoin's narrative as a store of value. A weaker dollar makes Bitcoin more attractive, especially for international investors, and could encourage institutional interest.
Bitcoin's climb above $100,500 highlights the significance of macroeconomic factors for the cryptocurrency market. The drop in inflation sparked optimistic sentiment, and the growth in open interest shows trader confidence in further market increases.
