Until a few hours back, people from the crypto community were lamenting about the bearish state of the market. However, bulls hung on, stacked up their long bets, and waited for the trend reversal to commence.
The main macro factor of the day, the US CPI results, were announced about half an hour back, and that single-handedly managed to change the fate of the market.
Bitcoin, the market’s largest asset, was lingering at a level as low as $66.9k earlier today. However, at the time of writing, it was seen exchanging hands at $69.5k already, with significant upside room to wiggle around.
The notched-up readings of the relative strength index and other technical indicators re-affirmed that the buying momentum was indeed brewing.
Bearish traders were mercilessly liquidated. Data from Coinglass pointed out that more than $35 million shorts were wiped out over the past hour, while the number of long liquidations stood merely around $3 million.
As far as the CPI is concerned, the number came in softer than expected, stirring in optimism. When compared to the consensus expectation of 3.4%, the number registered in May stood at 3.3%, according to the US Bureau of Labor Statistics.
Analysts have already started betting that inflation cooling down has opened the doors for multiple rate cuts this year. However, they remain skeptical about the Fed implementing the same right off the bat.
The CPI report has been published hours before the Fed’s two-day policy meeting. Officials are reportedly expected to keep rates at a two-decade high for the seventh consecutive time.
BTC’s price is expected to fluctuate depending on the outcome of the meeting result and the stance of officials on economic progress.
