🚀 Bitcoin Weekly Outlook — Riding the US Inflation Rollercoaster 🎢
Bitcoin reaches $124,474 all-time high before falling dramatically in a turbulent week.
US inflation data drove BTC to new highs and then a retreat.
BTC plummeted below $118,000, unwinding $1.89 billion in long bets on-chain, marking a move from optimistic to cautious.
The Bitcoin (BTC) price had a wild week, rising to a record high of $124,474 before falling to $118,800 on Friday. Mixed US inflation data first boosted positive momentum but eventually slowed the market. The latest decline unwound nearly $1.8 billion in long bets on-chain, indicating a change from optimistic to cautious attitude.
Bitcoin fluctuates amid contradictory US inflation figures.
Bitcoin hit a new all-time high of $124,474 on Thursday, but it fell 4% and settled at $118,900 on Friday.
On Thursday, the Bureau of Labor Statistics issued US Producer Price Index (PPI) data, which dampened optimism. The PPI surpassed experts' predictions, indicating inflation is rising. PPI report caused risk-off sentiment that pulled BTC below $118,000, ruling out a 50-basis-point rate drop.
Long Bitcoin positions unravel, liquidating leverage traders.
CryptoQuant's graphic below reveals a $1.89 billion long position unwind when BTC fell below $118,000 this week. As previously stated, this fast drop signals aggressive selling or long position closure.
The Bitcoin Treasury Strategy research by Sentora states that 213 corporations and governments have $228.85 billion in BTC. The data below illustrates that public firms possess 71.4%, private companies 24.4%, and governments and other organizations 4.2%.
SoSoValue data reveals institutional investors' $561.95 million net inflow this week through Thursday. These net weekly inflows were somewhat higher than the week before but lower than mid-July, when BTC was at a comparable level.
More firms are storing BTC, indicating broader usage and acceptability, which is good for Bitcoin.
