10x Research Head Researcher Markus Thielen, the analyst who predicted the pre-halving Bitcoin all-time high, cited a June CPI reading of ‘3.3% or lower’ on May 30 as critical for a new all-time high.
According to Thielen’s insights in a 10x Research report, while Bitcoin price movements might “appear random,” they are actually influenced by fundamental factors.
Thielen cited inflation as the main driver, noting the importance of the US Bureau of Labor Statistics (BLS) releasing the CPI results on June 12.
He believes that for Bitcoin to consider surpassing its all-time highs reached in March, it will need to see a slowdown in US inflation in the upcoming results.
“If inflation prints 3.3% or lower, Bitcoin should make a new all-time high,” he said.
This represents a 0.1% decrease from the previous CPI result of 3.4% on May 15.
Thielen believes that if the CPI reading is higher than expected, it may have the opposite effect, weakening Bitcoin’s momentum.
There have been several instances throughout this year when Bitcoin’s price declined following higher-than-expected CPI results.
On April 10, the CPI was reported at 3.5%, just 0.1% higher than anticipated. Shortly after, Bitcoin’s price experienced a major decline, dropping 6.67% to $56,000 on April 30.
In contrast, on May 15, Bitcoin surged more than 5% to $65,000 following a CPI decrease. The CPI dropped to 3.4%, just 0.1% lower than anticipated, which propelled Bitcoin’s price.
This demonstrates how even a slight increase in the CPI can negatively impact Bitcoin’s momentum. CPI is important because it supports the prospect that the Federal Reserve will be able to ease interest rates later this year.
The CME FedWatch Tool shows that the market predicts the Federal Reserve will
Read more on cryptonews.com