The trading volume of exchange-traded funds (ETFs) linked to the largest cryptocurrency, Bitcoin, has surged, signaling a bullish trend. Despite a recent downturn in the broader cryptocurrency market, with Bitcoin dropping below the $67,000 mark, the increase in ETF volume has sparked a significant recovery in the asset’s price.
On June 11, analysts at the on-chain platform, Santiment, observed a peak in Bitcoin ETF volume not seen since May 15, suggesting a potential price rally. The spike in volume indicates a higher likelihood of price fluctuations, with the latest surge likely triggered by a buying response to the dip. Could this signal a potential rebound?
The price of Bitcoin had experienced notable declines in the days leading up to two key events that could impact its price action: the release of the US Consumer Price Index (CPI) report for May 2024 and the Federal Reserve (Fed) rate announcement. The outcome of these events could influence the direction of the cryptocurrency market.
As anticipation builds for the CPI report, scheduled for release on June 12, experts are expecting a year-on-year increase of 3.4% or a month-on-month increase of 0.3%. A lower-than-expected CPI could signal a slowdown in inflation, boosting the chances of a crypto rally, while a higher figure could indicate persistent inflation concerns, potentially leading to a market downturn.
Cryptocurrency analyst Ali Martinez shared a chart showing Bitcoin’s upward trajectory, noting the asset’s tendency to rally after every Federal Open Market Committee (FOMC) meeting. The current price of Bitcoin stands at $67,742.40, reflecting a 1.3% increase in the past 24 hours.
It is important to note that the information provided in this article is for informational purposes only and should not be considered as financial or investment advice. Investing in cryptocurrencies carries inherent risks of financial loss.
In conclusion, the surge in Bitcoin ETF volume and the upcoming economic reports could set the stage for a significant price movement in the cryptocurrency market. Stay tuned for further updates on Bitcoin’s price forecast and market trends.