Bitcoin Investors Hold Steady Ahead of CPI Data Release

Cryptocurrency investors are increasingly holding onto digital assets, especially Bitcoin, as they await the release of the upcoming US Consumer Price Index (CPI) data.

This shift towards accumulation reflects positive investor sentiment and the anticipated impact of the CPI on the crypto market.

On-chain data from Glassnode shows that despite recent volatility, investor confidence in Bitcoin is rising. Large wallet holders, often associated with institutional investors, are significantly increasing their Bitcoin holdings. The Accumulation Trend Score (ATS) has reached its peak, indicating a strong trend toward accumulation.

The market saw significant turmoil last week with $1.06 billion in liquidations due to weak economic data and geopolitical tensions. Despite this, Bitcoin rebounded sharply, trading at $60,806 and contributing to a 2.4% increase in the total crypto market cap, now at $2.23 trillion.

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Looking ahead, analysts anticipate that potential Federal Reserve rate cuts could sustain market momentum. Historically, Bitcoin has rallied in response to falling inflation, though recent trends suggest this relationship may be evolving.

Positive long-term prospects for Bitcoin are supported by continued inflows into Bitcoin ETFs and favorable regulatory developments, with over $17 billion in ETF inflows since January bolstering Bitcoin’s price and adoption.

Alexander Stefanov