Cryptocurrency research firm QCP reported that Bitcoin (BTC) recovered losses last week, exceeding $122,000. Ethereum (ETH) has skyrocketed 21% in the last seven days, surpassing $4,300 for the first time since 2021.
According to the report, BTC is currently highly correlated with the US stock market, with investors turning to data from the Consumer Price Index (CPI) released on Tuesday.
If CPI data is not meeting expectations, it could bolster expectations that the Federal Reserve will cut interest rates in September.
Optimism is spreading across the market, but investors are cautious about the risk of potential shortcomings and are trying to hedge their position.
The QCP emphasized that the key question is whether institutional funds and demand from spot Bitcoin ETFs can push BTC above the main levels of resistance.
Experts predict that Bitcoin could break an all-time high, especially if institutional investors penetrate the market and spotlight the fuel demand for ETFs. Future CPI data and Fed policies will be key to determining the direction of the crypto market.
*This is not investment advice.
