Recent events suggest Bitcoin may be primed for an upswing. The world’s largest cryptocurrency rose a day before the release of the latest US inflation reading.
Bitcoin was recently trading at about $22,200, up almost 2% over the past 24 hours. The token’s market value soared past $22,000 early Monday as investor appetite for riskier investments returned.
Some traders are still skeptical of a September crypto rebound, but analysts feel that if the price does not fall markedly in the next few days, bitcoin could gather momentum to move higher.
Cryptos' recent gains tracked equity markets, which continued a mini winning streak with the tech-heavy Nasdaq, S&P 500 and Dow Jones all climbing more than a percentage point.
Investors have been feeling more upbeat about the prospect of a positive Consumer Price Index (CPI) on Tuesday showing inflation's momentum continuing to wane. Many expect CPI equal to or lower July's 8.5% figure. Other indicators, including job figures, have remained strong, suggesting the economy will achieve the Federal Reserve’s objective of a soft landing.
What does this mean for me?
Crypto investors will be feeling cautiously optimistic about the most recent round of positive updates. Market watchers have warned that bitcoin may not have bottomed out, and that even lower price levels are possible. However, the latest round of positive news charts a way for the token to continue to rise.