Bitcoin Stabilizing ahead of Next Breakout?

Bitcoin’s (BTC) movement is slowing down after a strong upswing on Wednesday. The crypto token has moved past the $66,000 level to its biggest gain in months.

For Friday morning, the token had only gained 0.28% over the previous day. This minor change is good news, as it demonstrates that Bitcoin is not losing ground from its major gains this week. The bullish movement was not a fluke but an indication that Bitcoin is still strong and only needs a small positive event to set it off in the right direction.

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Bitcoin started to climb because of promising inflation data from the Consumer Price Index report (CPI). The coin may continue to do well and keep climbing intermittently if the data holds and there is nothing contrary coming out to indicate rising inflation.

FOMC member Waller speaks later today, commenting on inflation and the economy, most likely. Waller may also have some updates on interest rate cuts, all of which could affect Bitcoin and its current movement.

What to Anticipate from Bitcoin

Heading into the weekend, Bitcoin may start moving quickly. Investors will have to focus on cryptocurrency, since stock market trading will be closed off later today until Monday. That gives the crypto market an opportunity to be very active.

We expect that Bitcoin will continue to move upward, but probably not as sharply as it did on Wednesday. Any small news on inflation should move it in one direction or another.

Even though Bitcoin has shown it can be bullish right now, it is still vulnerable and volatile. The coin has had a tough time of gaining ground over the past couple of months, and that puts it in a fragile position where bad inflation news could tank the coin for a while. Consumer confidence in cryptocurrency is not high at the moment. Wednesday’s surge helped, but investors will need reinforcement to help them commit more fully to crypto after the recent low performance of these coins. 

 

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ABOUT THE AUTHOR See More
Timothy St. John
Timothy St. John
Financial Writer - European & US Desks
Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.
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