Bitcoin climbs to US$67,000 as U.S. inflation softens and interest in spot ETFs grows

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20th May 2024 – (New York) Bitcoin (BTC) experienced a significant rally over the weekend, crossing the $67,000 mark for the first time in nearly a month, buoyed by the latest U.S. economic data indicating a slowdown in inflation and burgeoning interest in spot Bitcoin exchange-traded funds (ETFs). Despite this surge, Bitcoin’s performance was overshadowed by larger gains in other cryptocurrencies such as Chainlink (LINK), Ether (ETH), and Solana (SOL).

Parth Chaturvedi, the head of investments at CoinSwitch Ventures, noted, “The market sentiment has rapidly shifted following the release of recent U.S. inflation figures and the discovery of growing interest in spot Bitcoin ETFs through new regulatory filings.”

The cryptocurrency sector in the U.S. is at a critical juncture with imminent regulatory developments. The House of Representatives is set to vote on the Financial Innovation and Technology for the 21st Century Act (FIT21) next week, a bill Chaturvedi believes could be a landmark in crypto regulation. Similarly, Turkey is progressing with its own regulations, with the Capital Markets Board (CMB) taking charge of overseeing crypto businesses.

In a related development, Rajagopal Menon, Vice President at WazirX, highlighted the potential upward trajectory for Shiba Inu (SHIB), which is currently trading around $0.000023. “Should it break the $0.000025 resistance level, we could see SHIB climb to $0.000030, propelled by the broader bullish trend in Bitcoin,” Menon explained.

Menon also discussed the market dynamics surrounding XRP, which is currently positioning to test higher resistance levels. However, he warned of a potential increase in bearish momentum should it fall below $0.500.

Amid these developments, the CoinDCX research team reported a recent drop of over 2% in both BTC and ETH, noting a choppy price action that remains within a tight range, suggesting a cautious market stance. They underscored the importance of the upcoming U.S. Consumer Price Index (CPI) numbers, anticipated to have a significant impact on market movements.