Recently, Bitcoin achieved a new all-time high, surpassing $120,000. Analyzing the reasons behind this rise and its potential consequences reveals key factors including trade tariffs and inflation data.
Bitcoin Rally: The Impact of Trade Tariffs
The rally began after Trump announced a 30% tariff on imports from the EU and Mexico. In the past, such trade tensions have led to increased interest in crypto assets as digital gold. Bitcoin broke past the $120,000 level, following a brief consolidation.
Inflation Insights and Its Market Impact
Markets are currently awaiting the release of the US Consumer Price Index (CPI) data. Predictions indicate possible increases. Weak inflation data could heighten expectations of Fed rate cuts, positively impacting Bitcoin. Conversely, unexpected high figures may slow down the rally.
Predictions and Risks for Bitcoin
Ledn CEO John Glover believes Bitcoin could reach $136,000 by year-end. He views the recent dip to $96,000 as merely a correction. However, there are risks, such as potential CPI increases, new trade tensions, or large holder sell-offs that could trigger a downturn.
As the inflation data release approaches, the trend for Bitcoin will depend on how the published figures align with expectations. If CPI is lower than anticipated, it could serve as a catalyst for further gains. Otherwise, short-term prospects may become uncertain.
