In May this year, U.S. inflation showed a slight rise, remaining above the Federal Reserve's target level. Technical analysis indicates potential growth for Bitcoin in the future.
U.S. Inflation Data
In May 2023, U.S. inflation rose by 0.1%, somewhat alleviating market concerns, yet it remains above the Fed's 2% target. The Consumer Price Index (CPI) also saw a 0.1% increase, with the annual inflation rate at 2.4%.
Core CPI Analysis
Core CPI, which excludes food and energy, also increased by 0.1%, falling short of the anticipated 0.3% rise. Year on year, Core CPI stood at 2.8% against the estimated 2.9%. Notably, apparel prices declined contrary to expectations of a rise due to tariffs, marking the fourth consecutive month of lower-than-expected inflation.
Bitcoin Forecasts
Forecasts for Bitcoin remain uncertain; however, technical analysis reflects a positive long-term trend. Bitcoin’s price is above both the 20 and 50-week moving averages, indicating stable purchasing volumes after the March and April retracement. Recent dynamics suggest that the price may reach new highs, with a key demand zone tested earlier in June between $98k and $100.7k. A daily close below $106.5k could signal trouble, but for now, the demand for Bitcoin, coupled with reduced profit-taking, indicates expectations of much higher prices.
In light of rising inflation in the U.S., analysts maintain an optimistic view of Bitcoin's future, which may indicate its long-term profitability.
