Bitcoin is currently trading near $110,000, maintaining close proximity to its recent peak of $111,814. Investors are eagerly anticipating U.S. inflation data that could impact the Federal Reserve's interest rate decisions. The market expects a 0.3% rise in core inflation and a year-over-year headline inflation of 2.4%. Amid ongoing institutional buying, Bitcoin has witnessed a 4.2% increase over the past week, with a strong support level around $105,500. The CME's FedWatch Tool indicates a 61% chance of a rate cut in September. In addition to inflation indicators, macroeconomic signals such as U.S.-China trade negotiations and developments in the cryptocurrency ETF space are contributing to a bullish outlook. Bitcoin's implied volatility has reached its lowest in a year, reflecting a calmer market sentiment. Analysts highlight that this market cycle could become a ‘supercycle’ due to increased institutional participation, despite potential risks from regulatory changes and liquidity concerns. Price predictions from firms like Bitwise and VanEck suggest Bitcoin could reach between $180,000 and $200,000 by the end of the year if current trends continue.

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