Bitcoin Soars to $97K: A Closer Look at the Recent Rally
Bitcoin has once again climbed toward the $97K mark, sparking excitement among crypto enthusiasts and traders. This marks the first time the cryptocurrency has retested this level in two months, following volatility in both macroeconomic and microeconomic factors. But does this breakout signal sustainable growth, or is it just another fleeting rally?
Delay in Supreme Court Ruling: A Catalyst for the Spike
One of the main catalysts behind Bitcoin’s ascent was the unexpected delay in the Supreme Court’s decision regarding the legality of former President Donald Trump’s tariff policies. This delay surprised traders, triggering a bullish reaction that pushed BTC up by 1.65% during the trading session. Additionally, a robust influx of spot ETF investments, totaling $840 million according to CryptoQuant, further fueled the positive momentum.
Impact of Inflation and Fed’s Stance
On the macroeconomic side, the latest Producer Price Index (PPI) report exceeded expectations, coming in at 3% compared to the forecasted 2.7%. Rising inflation has added another layer of uncertainty to the financial markets, creating ambiguity around the Federal Reserve’s next moves. As the FOMC meeting approaches, this has left traders wondering: Will the Fed take a more hawkish stance, or will it deliver the anticipated rate cuts?
Bitcoin Faces a Crossroads
Despite breaking higher levels, it’s important to note that BTC still trades within a range. This rally could be a sign of recovery from its past corrective phase rather than the start of a long-term uptrend. While short squeezes eliminated $275 million worth of short positions, it remains to be seen whether Bitcoin can sustain this momentum in the face of uncertain macroeconomic policies.
For now, Bitcoin’s Fear and Greed Index, hovering just below the greed zone, reflects cautious optimism among market participants. But with several critical events on the horizon, such as the Federal Reserve’s decision and the Supreme Court’s eventual ruling, only time will tell if BTC can solidify its position above $97K or fall back into its previous consolidation range.
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Stay tuned for more updates as Bitcoin continues to push through new milestones in its ongoing journey to reshape the financial world.
