Bitcoin exceeded $110,000 on Tuesday, backed by sustained institutional purchases and careful investor placement ahead of U.S. inflation data that could affect the Federal Reserve's interest rate outlook for the remainder of the year.
The crypto was traded for $109,900 after reaching a session high of $110,237. According to data from Coingecko, it has risen 4.2% over the past week, continuing to be within the May 22nd peak of $111,814.
Investors will come at 8:30am on Wednesday as they wait for the May Consumer Price Index Report.
Economists expect CORE CPI to increase by 0.3% from April, with Headline CPI rising by 0.2% a month ago, 2.4% year-on-year and 2.4% per marketwatch data. Producer price data is scheduled for Thursday.
Sticky inflation may slow down expected rate cuts and weigh risk assets, but so far the market outlook remains buoyant.
Fed futures show that the market is leaning towards cuts in September. CME's FedWatch Tool.
“Current gatherings are less speculative and more structurally driven than past cycles,” said Rachael Lucas, a crypto analyst at BTC Markets. Decryption In a statement. “Institutional capital, ETFs and the Ministry of Corporate Treasury play a key role in creating sustained purchasing pressure.”
Lucas pointed to a leveraged long position of $54.5 million that has recently sparked upward momentum. Support will remain at around $105,500, she said.
Previously MicroStrategy, previously maintained 582,995 BTC. Japan's Metaplanet plans to raise $5.4 billion to expand its Bitcoin reserve, while the Blockchain Group is $342 million Indications that demand remains rising despite future market uncertainty.
In the ETF space, BlackRock's iShares Bitcoin Trust (IBIT) has reached $70 billion in assets. Meanwhile, Ethereum ETF recorded a 15-day inflow. data.
The broader macro signal also changes supportively, and the US continues to be Trade ConsultationUK I will lift the ban We are working on CBDC pilots in Crypto ETFS and Hong Kong on ChainLink.
Analysts suggest that this cycle may have evolved into a “supercycle,” characterized by shallow drawdowns and increased institutional resilience.
“But this doesn't mean there's no risk,” Lucas added. “Regulation reversal, liquidity shortages, or competitive competitiveness could potentially limit flows to other digital assets such as Ethereum and Solana to potentially rise.”
If profits are made, the government's bond could regain appeal and raise potential headwinds in crypto prices if the Federal Reserve signaled a slower path to speed reductions, Lucas warned.
Still, price targets from companies, including Bitwise and Vaneck, range from $180,000 to $200,000 at the end of the year, remain intact, assuming a macro state of continuous inflow and mitigation.
