The price of Bitcoin (BTC) may enter a strong upward momentum that could reach $200,000 by the end of the year, along with lower-than-expected inflation data from the U.S.
The announcement of May's inflation data in the U.S. could be a significant turning point for Bitcoin investors. According to data from the U.S. Department of Labor, the consumer price index (CPI) increased by only 0.1% last month, while the expectation was 0.2%. This situation strengthens the likelihood of the Fed cutting interest rates and supports a bullish scenario for Bitcoin.
Matt Mena, 21Shares' Crypto Research Strategist, stated that if Bitcoin clearly breaks its current critical range of $105,000 to $110,000, it could reach the year-end target of $138,500 earlier by the end of summer. Mena emphasized that if momentum continues to increase, it is now possible for the price of Bitcoin to reach $200,000 by the end of the year.
The slowdown in inflation has created expectations that the Fed may accelerate interest rate cuts. Traders are currently pricing in approximately two rate cuts this year, totaling 50 basis points. The first rate cut is expected to occur by October, while the probabilities for September have surpassed 70%.
According to Mena, entries into the Bitcoin market may increase due to corporate adoption and the impact of stablecoin regulations. Additionally, national strategic programs aimed at increasing Bitcoin reserves are emerging as another factor that will support this process.
As Bitcoin continues to increase its weight in global investment portfolios, it stands out as an asset that can maximize benefits from this positive environment.
The price of Bitcoin is trading around $107,415 at the time of writing.
Stay tuned for new developments.