Bitcoin (BTC) price surged by 3% in the last 24 hours to reach $84,233. This was driven by several factors, including encouraging inflation data, a cooled leveraged market, and a gold price surge.
Encouraging Inflation Data
In the past two days, major U.S. stock indexes like the S&P 500 and Nasdaq recorded mild recovery following an encouraging inflation update. Earlier this week, the U.S. Bureau of Labor Statistics reported that consumer prices rose less than expected despite the ongoing trade wars triggered by President Donald Trump. This positive trend in stock markets has positively impacted the crypto market, led by Bitcoin.
Cooled Leveraged Market
The cryptocurrency market experienced a rather calmer period in the past two days after notable forced liquidation earlier this week. This mass liquidation of long traders allowed for a mild crypto recovery, led by Bitcoin. Additionally, the total Bitcoin futures Open Interest (OI) surged by over 5% to approximately $49 billion.
Gold Price Surge
Gold prices surged close to $3,000 per ounce for the first time in history last week. With Bitcoin often perceived as digital gold, its price gained support and is likely to continue to rise in the coming days.
After a nearly 30% correction since the second inauguration of U.S. President Donald Trump, Bitcoin's price may be approaching the end of a multi-week correction phase. The anticipated implementation of the U.S. strategic Bitcoin reserve has rekindled bullish sentiment for a potential rally beyond $108k in the near future. However, Bitcoin demand from whale investors remains low compared to last year, evidenced by five consecutive weeks of cash outflows from U.S. spot BTC ETFs.
