Posted by Xoken.org – Bitcoin managed to recover after falling to the level of USD 56,500 per chip on May 1, a decline after printing a new all time high on March 14 2024 at a price of USD 73,768 per chip.
Financial Expert Ajaib Crypto Panji Yudha explained that bitcoin rose by 6.85 percent, so that on Tuesday, May 21 2024 it was at USD71,248 per chip.
“Furthermore, if BTC can stay above the support of USD 69 thousand then the next potential is to rise to test the all time high area at USD 73,768. However, if there is a decline below the support of USD 69 thousand, the potential will bring BTC to weaken to USD 65,500,” explained he said in a written statement, Tuesday, May 21 2024.
Panji said the increase in the last few days could be an impetus for Bitcoin to break the Sell in May trend with the potential to close May positively.
“Since May 1 until now bitcoin has strengthened 14.86 percent, in the last three years bitcoin has always closed down in May,” he emphasized.
Meanwhile, Altcoins with large market capitalization also experienced increases in the last 24 hours: Ethereum (ETH) rose 17.94 percent to USD 3,650, Avalanche (AVAX) rose 12.59 percent to USD 39.75 per chip and Solana (SOL) shot up 9.69 to USD184.
Bitcoin ETF inflows
The increase in bitcoin (BTC) since last week was partly motivated by spot Bitcoin ETF trading which experienced significant inflows during last week’s trading, marking the second week of positive flows in a row.
According to Coinglass data, in the May 13-17 trading period the spot Bitcoin ETF in the US recorded a total net inflow of around USD948.3 million.
Additionally, the crypto asset market reacted positively to signs of slowing inflation in the United States. On Wednesday, May 15, 2024, BTC jumped more than seven percent to move above USD 66 thousand, after the Consumer Price Index (CPI) report was released, which showed a slight decrease in inflation compared to March.
Monthly inflation
The April CPI report showed an increase in monthly inflation of 0.3 percent MoM, lower than March which was recorded at 0.4 percent MoM. Annual inflation also showed a slight decline, reaching 3.4 percent YoY in line with market expectations and lower compared to March at 3.5 percent YoY.
Core CPI, which excludes volatile food and energy prices, with an increase in line with market expectations of 0.3 percent MoM in line with expectations and an increase of 3.6 percent YoY.
“Inflation figures that appear in line with market expectations have triggered a positive response in the crypto market. Bitcoin, which was previously pressured by the prospect of continued high interest rates, saw a price surge after showing that inflationary pressures were again moderating,” said Panji.