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Bitcoin Price Crosses $72,000 with US Inflation Data Helping Pre-Halving Hype

Last Updated April 8, 2024 1:26 PM
Teuta Franjkovic
Last Updated April 8, 2024 1:26 PM

Key Takeaways

  • Bitcoin surpasses $70,000 fueled by halving hypet.
  • Network fundamentals add fuel to the fire.
  • Mixed market signals.

Bitcoin’s robust start to the second week of April saw its price surge past the $70,000 milestone, igniting widespread anticipation in the trading community for a potential test of all-time highs.

This upswing comes after a period of consolidation, with traders and investors eyeing the critical block subsidy halving event due in just ten days, a factor that historically triggers volatility and market activity.

Bitcoin Charges Past $70,000 Amid Bull Market Buzz

Network fundamentals, including a forecasted difficulty adjustment to record levels, are also under the spotlight as potential catalysts for further price movements.

While the crypto market buzzes with optimism, broader macroeconomic sentiment remains guarded, with market participants evaluating the Federal Reserve’s next moves  regarding interest rates.

This week, attention is also turning to key inflation indicators with the release of the Consumer Price Index (CPI)  and Producer Price Index (PPI) for March.

Market Sentiment Mixed Amid Economic Indicators

These metrics could influence the Federal Reserve’s stance on interest rates and have a ripple effect on market expectations.

Despite the mixed economic signals, Bitcoin’s resilience and the looming halving event keep market optimism alive, with traders speculating on the possibility of Bitcoin reaching new highs or retreating to close existing price gaps in the futures market. 

Bitcoin Sees Normal Selling Behavior as ATHs Breached, Analysts Say

Bitcoin’s recent climb to $73,800 prompted long-term holders (LTHs) to become active sellers, leveraging the increased market demand and liquidity. According to Checkmate , a lead on-chain analyst at Glassnode, this trend of LTHs liquidating part of their holdings during peaks is a common pattern observed across previous all-time high (ATH) breaks.

History shows LTHs typically sell about 14% of their BTC holdings in bull markets, and currently, we’re witnessing less than half of this expected turnover.

Checkmate views this as a normal cycle where the market has historically managed to absorb the sell-side pressure from LTHs without derailing the bullish momentum.

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