News - Bitcoin (BTC) positive again, price heading toward 61K

By Ted Maas

Bitcoin (BTC) positive again, price heading toward 61K

Bitcoin (BTC)
Price update

The Bitcoin price has climbed above 60,000 for the first time in a month. This is due to positive inflation figures from the US.

The No. 1 cryptocurrency has made significant gains since yesterday afternoon. At the time of writing, BTC is trading at €60.627. At its peak, digital gold was even trading above 61K. The bull run correlated with the trading start in America. The New York Stock Exchange (NYSE) opens its doors at 14:30.

Bitcoin's strong performance is due to inflation data in the U.S., which the market read positively. Annualized inflation fell slightly to 3.4 percent in April from 3.5 percent. This is positive because inflation had risen slightly against trend last month. There now appears to be an overarching trend of falling inflation rates, making a downward turn in interest rates more likely.

Fed Chairman Powell said during an event on Tuesday, May 14, that although restrictive monetary policy may last longer if inflation persists, the Fed is highly unlikely to raise the key interest rate again.

Bitcoin is highly correlated to global liquidity, which in turn reacts sensitively to key interest rates, especially those of the Fed in America. Signals of monetary policy easing, even a cut in key interest rates, are therefore positive for the crypto market.

In addition to Bitcoin, stock indices such as the Nasdaq 100 are also reacting positively. At the time of writing, the U.S. tech stock index is up 1.5 percent. For the full year, the Nasdaq 100 is up 12.4 percent. The appointment of Salim Ramji as CEO of Vanguard should also send a positive signal. Unlike his predecessor, the new CEO is seen as crypto-friendly.

Vanguard caused outrage in January for denying its clients access to Bitcoin ETF trading. Now the community speculates that the world's second-largest asset manager is changing direction.

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