(Bloomberg) -- Bitcoin surged by 4% in early trading on Tuesday, breaking above the $80,000 mark for the first time in three weeks after fresh US inflation data came in cooler than anticipated, bolstering expectations for a mid-year interest rate cut from the Federal Reserve.
"The move was a direct reaction to the CPI print showing a deceleration in core inflation," said Markus Thielen, founder of 10x Research. "This gives the Federal Reserve more room to ease policy, which is a significant tailwind for assets like Bitcoin."
The largest cryptocurrency by market value jumped to an intraday high of $80,500, its strongest level since late March, according to CoinGecko data as of 01:43 UTC. The rally triggered a cascade of liquidations, with data from Coinglass showing over $150 million in short positions being wiped out in the last 12 hours, primarily on exchanges like Binance and OKX. Ethereum, the second-largest cryptocurrency, also saw a 3.5% increase, trading around $4,100.
The sudden price appreciation suggests a potential shift in market structure. For weeks, Bitcoin had been trading in a tight range, with significant resistance at the $75,000 level. The next key resistance is now seen at the all-time high of around $85,000, while support is established near the $78,000 mark.
This article is for informational purposes only and does not constitute investment advice.
