Bitcoin Surges Above $80K as Traders Brace for US CPI Data Impact

Bitcoin has soared above $80,000 as traders keep a watch, on the US inflation data.

Bitcoins value surged past $80K again this Tuesday following a dip of around 3 percent the day. Cryptocurrency traders are feeling anxious as they anticipate US reports such as the Consumer Price Index (CPI) set to release tomorrow and the Producer Price Index (PPI) scheduled for Thursday. These upcoming reports have the potential to cause fluctuations, in the prices of Bitcoin and other digital currencies.

Lately, there have been fluctuations in the market, with Bitcoin dipping briefly to $76,606 during the trading session before bouncing back in the early European hours. The recent downward trend resulted in over $955 million worth of liquidations across the cryptocurrency market within a span of 24 hours.

Investments from institutions in Bitcoin seem to be slowing down as shown by data on US spot Bitcoin ETF outflows totaling $278.4 million on Monday and $739.2 million in total withdrawals per week, which could potentially impact Bitcoin’s price further if this trend persists.

The markets instability heightened when the defunct Mt. Gox exchange transferred 11,833.6 BTC valued at about $932 million on Tuesday. Significant movements, from wallets frequently trigger worries, about selling pressure that might impact Bitcoins value.

Traders are closely monitoring the inflation data, in the US as it could impact the movement of Bitcoin based on trends. The robust growth, in employment and increasing wages are bolstering the economy; however worries about inflation and trade disruptions are causing uncertainty. Making it difficult for Bitcoin to establish a definite trajectory.

Bitcoins technical situation is still uncertain at the moment. The Relative Strength Index (RSI) hints at a bounce from being oversold; however it requires consistent buying activity to surpass the neutral 50 level. If Bitcoin drops below $78k mark, the next significant support is likely to be $73k. On the upside a surge, in value could lead Bitcoin to challenge resistance levels near $85k.

As we anticipate the release of inflation figures Bitcoins future path may hinge largely on broader economic changes and how investors feel about it. For traders there it’s crucial to stay vigilant given the high levels of market volatility.