Bitcoin BTC$103 944.58 Could soon reach record vertices, triggering accelerated gains on the larger Altcoin market, because softening American trade tensions can see the markets react positively to a potential slowdown of the IPC in April due to this week.
The United States has concluded a trade agreement with China after two days of high-level negotiations in Geneva, the American Treasury Secretary Scott Bessent and the commercial representative Jamieson Greer announced on Sunday. The two countries are expected to publish a joint declaration on Geneva commercial talks later on Monday.
The trade agreement comes after weeks of a TIT-For-Tat trade war which has seen the two countries increase import prices greater than 100%, threatening to inject inflation into the global economy. As such, positive data in consumer price inflation of the United States of March positive published last month have been widely rejected by investors and analysts as a late metric which does not precisely reflect increasing trade tensions.
The Bears, however, can no longer make this argument, thanks to the commercial agreement.
Thus, a continuous softening of the IPC could increase bets to lower the rates of the Fed, offering a Haussier catalyst for a BTC rally to record heights greater than $ 110,000. On the other hand, an IPC warmer than expected could be rejected as at the rear, reflecting the prices of April and ignoring the de -escalation of trade tensions.
The IPC which should show Tuesday should show that the cost of living has been faded at 2.3% in annual shift in April compared to 2.4% of March, according to RBC. The basic IPC, which excludes food and energy, should have been 2.8% in annual sliding in April, with a continuous moderation of rent inflation.
According to 10x Research, consensus is that the CPI title probably remained unchanged at 2.4% in April.
“If this expectation is, the market can consider the inflation report as positive. With the exception of any title of negative prices, the inflation data of this week of this week could provide an optimistic catalyst,” said Coindesk Markus Thielen, founder of 10x Research.
“ICC could be optimistic and can bring new heights of all time,” added Thielen.
Bitcoin, the main cryptocurrency by market value, changed hands at around $ 104,000, at only 5.1% of fewer new heights higher than $ 109,350, according to Coindesk data.
BTC has obtained an almost V recovery compared to $ 75,000 since the beginning of April, prices that increased by 10% last week due to continuous entries in the stock market funds (ETF).
According to Sosovalue data, BlackRock Bitcoin ETF (IBIT) has recorded net inputs for 20 days of consecutive negotiations, raising more than $ 5 billion in investors. Last week, the federal reserve maintained the benchmark cost of the unchanged reference in a range of 4.25% to 4.5%, while reiterating the dependent position of data on potential rate drops. President Jerome Powell, however, offered dominant advice, saying that “the image of underlying inflation is good”, while calling the inflationary impact of short-term prices.
Ether, the second largest cryptocurrency by market value, increased by $ 2,500 last week, the best performance since December 2020, according to TradingView. Other major altcoins such as XRP, DOGE, ADA and SOL jumped 9.7%, 56%, 19%and 20%, respectively.
According to HTX Research, there are not yet signs of speculative frenzy, which means that the rally could continue.
“Implicit volatility (IV) in Bitcoin options remains stable in the beach from 50% to 55%, well below the extreme levels of 80% + generally observed at the top of the previous bull markets. CME Bitcoin Futures open interest is currently at $ 14.8 billion, much lower than the top of $ 20 billion observed during the election period 2020, indicating that The lever is still manageable, “said HTX.
“As long as yields do not retreat above 4.8% and FNB entries remain stable, Bitcoin is likely to consolidate between $ 105,000 – $ 115,000 while waiting for the next breaklot,” added HTX.
