Bitcoin’s Price Climb: Inflation Concerns Hinder Rebound

Bitcoin’s price has shown signs of recovery in recent weeks, exceeding the $4,500 mark after experiencing a significant discount due to political and economic factors. This recovery has ignited hopes for further price surges towards $100,000 or beyond. However, analysts are closely monitoring inflation data, which may provide insights into liquidity trends within risk-on assets. 📈 📉 The latest inflation figures reveal an upward trend in consumer inflation expectations, reaching a recent high of 6.7%, marking consecutive monthly increases for the past four months. This trend could pose challenges to Bitcoin’s recovery as rising interest rates from the Federal Reserve (FED) are anticipated, potentially hindering investor confidence and liquidity flow for BTC. 💸 While this period might see slower recovery or even a decline in price, another major Bitcoin ETF is expected to enter the market soon. ⚡️ Charles Schwab, a financial services company known for its expertise in traditional finance, reportedly plans to introduce crypto spot ETFs later this year. This development indicates growing institutional interest in cryptocurrencies. However, given that official timeline details are yet to be confirmed and existing Bitcoin ETFs have struggled with weak institutional demand, the impact of this potential ETF launch may not be immediate. In addition, the market’s overall sentiment remains cautious, with investors hesitant about improvements in market conditions for more liquidity injection, which might also contribute to a limited response. The recent drop in bitcoin transactions volume suggests a cooling trend after an earlier surge driven by price pivots, following the weekend. 📉 While whales took profits over the past week, Bitcoin maintained its ground against bearish pressure, exhibiting resilience with a narrow price range ($83,000 and $86,500). The market awaits clarity about whether Bitcoin will regain momentum or succumb to bears. 🤔 The short-to medium-term outlook of Bitcoin hinges heavily on inflation, interest rate outcomes, and the subsequent effects on liquidity flows in markets. 🌎