by Bullet Points:
– Bitcoin price is up today after the news of the Genesis bankruptcy was already priced in.
– The rise in Bitcoin price is due to the cooling US dollar index (DXY) and positive Federal Reserve comments post inflation data in the Consumer Price Index Report (CPI).
– Federal Reserve Governor Christopher Waller hinted at where interest rates may be headed in the near future.
Today, Bitcoin price is up after traders decided that the Genesis bankruptcy news was already priced in and unlikely to severely impact BTC price. A primary catalyst for the rally appears to be the positive CPI report released on Jan. 12 by the Bureau of Labor Statistics (BLS) which showed overall inflation for all urban consumers declining by 0.1%. The drop in inflation was the largest since April 2020.
The positive inflation data has been noted by the United States Federal Reserve, which is in charge of interest rate increases. Federal Reserve Governor Christopher Waller, hinted at where interest rates may be headed on Jan. 20, stating that “Based on the data in hand at this moment, there appears to be little turbulence ahead.”
The cooling US dollar index (DXY) and positive Federal Reserve comments post inflation data in the Consumer Price Index Report (CPI) has been a key factor in Bitcoin price remaining above the $21,000 range. Equities traders are also reacting positively to the news, driving prices higher on the hopes that the positive data spurs less aggressive Federal Reserve interest rate hikes at the Federal Open Market Committee (FOMC) meeting on Feb. 1.
Overall, the news of the Genesis bankruptcy being priced in, the cooling US dollar index, and the positive Federal Reserve comments have been major contributors to Bitcoin price remaining above the $21,000 range. The hope is that the positive inflation data will spur less aggressive Federal Reserve interest rate hikes in the near future. With all these factors combined, Bitcoin price is likely to remain at its current level, or even increase.
