Bitcoin is strongly heading towards recording new price levels, benefiting from the optimism that is prevailing in the markets due to the easing of trade tensions between the United States and China, in addition to the anticipation of the U.S. Consumer Price Index data for April, which may indicate a slowdown in inflation, seen as a positive catalyst for the cryptocurrency market.
Bitcoin and other major cryptocurrencies, such as Ethereum and Dogecoin, have seen notable increases, supported by the continuous cash flows into exchange-traded funds (ETFs) and the stabilization of implied volatility in Bitcoin options, enhancing confidence in the continuation of this upward trend.
A U.S.-China Trade Agreement Reduces Inflationary Concerns and Supports Risk Assets
A trade agreement was announced between the United States and China following high-level talks, alleviating concerns about a global trade war and its inflationary impact.
Investors had previously ignored U.S. inflation data due to these worries, but with this agreement, a potential slowdown in inflation reflected in the upcoming Consumer Price Index data may become a catalyst for the rise of risk assets like Bitcoin.
Positive Analysis and Continued Upward Forecasts
Bitcoin is currently trading near levels of $104,000, close to its historic peak of $109,000. The currency has shown a strong recovery since early April, supported by significant inflows into exchange-traded funds.
Analysts believe that Bitcoin may stabilize in the range of $105,000 - $115,000 in the near term, awaiting new catalysts to push it towards breaking record levels.
