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Bitcoin has spent consecutive weeks trying to get close to its previous record high. With this condition, Bitcoin hits its price record.
According to one cryptocurrency analyst, Bitcoin’s price movement may “seem random”. But important drivers such as inflation are the factors that cause its growth and decline. In this digital currency post, you will read about the factors of Bitcoin price growth from the language of the top analyst.
According to one cryptocurrency analyst, when the results are released next month, we should see inflation in the United States ease before it reaches its March highs.
Marcus Thielen, senior researcher at 10x Research, said in a May 29 report ahead of the release of the consumer price index by the US Bureau of Labor Statistics (BLS). If inflation is at or below 3.3%, Bitcoin should be at an all-time high.
This represents a 0.1 percent decrease from the previous CPI result of 3.4 percent on May 15. Thielen believes there will be cash inflows to Bitcoin Exchange Traded Funds (ETFs) in the two weeks before the May CPI results are released.
But, if CPI results are higher than output, as seen earlier this year, price action may weaken.
Over the past two weeks, since May 13, Bitcoin ETF inflows tracked by Farside Data have been positive daily. The highest daily inflow of all inflows was on May 21 with $305.7 million.
Thielen argued that there are no “random” movements in Bitcoin’s price. It all comes down to key drivers, the main driver of which is inflation.
There have been several instances this year where the price of Bitcoin has fallen following higher-than-expected CPI results.
On April 10, CPI was printed at 3.5%, which was just 0.1% higher than expected. Just a few weeks later on April 30, the price of Bitcoin fell by 6.67% to $56,000.
Thielen noted that when bitcoin ETFs launched on January 11, despite $611 million inflows on the first day, the rest of January’s inflows were disappointing.
He claimed that the main reason for this is that the CPI results were printed “higher” than expected.
“CPI rose to 3.4%,” Thielen wrote. Higher than the expected figure of 3.2% and higher than the 3.1% recorded in the previous month. So it’s no coincidence that Bitcoin was weak in January and stronger in March, but stabilized for two months.
