Bitcoin Surges 0.46% to $108,380 on Bullish Inflation Data

Bitcoin (BTC) has been experiencing significant price movements, with the rate of Bitcoin (BTC) having gone up by 0.46% over the last day. As of the latest updates, Bitcoin is trading just below the $109,000 mark, having registered its highest weekly close in history. This price level is crucial as it indicates a strong bullish momentum, with the potential for further gains in the near future.

On the hourly chart, the price of the main crypto is going down after a breakout of the local support of $108,696. If the situation does not change by the end of the day, the correction is likely to continue to the $108,000 mark by tomorrow. On the longer time frame, bulls have failed to keep maintaining growth after yesterday's bullish bar closure. If nothing changes by the end of the day, there is a chance to see a test of the $107,000 by the end of the week. From the midterm point of view, bulls are more powerful than bears, as the rate of BTC is closer to the resistance than to the support. However, if sellers seize the initiative and the candle closes near $105,000, one can expect a correction to the $100,000 area. Bitcoin is trading at $108,380 at press time.

The recent favorable U.S. inflation data has provided a significant bullish catalyst for Bitcoin. The consumer price index (CPI) rose by only 0.1% last month, below the 0.2% increase forecasted by economists. This data suggests that inflationary pressures are abating, which could prompt the Federal Reserve to consider policy easing later this year. Following the report, traders have adjusted their expectations, pricing in approximately 47 basis points of Fed rate cuts for the year, with the probability of a cut in September surging above 70%.

This macroeconomic tailwind is compounded by other factors, including a record $21.9 trillion U.S. M2 money supply. This expansion of the money supply adds another layer of support for Bitcoin, as investors increasingly seek out hard assets to preserve their purchasing power. Prominent investors like Ray Dalio, founder of Bridgewater Associates, have pointed to unsustainable U.S. government spending and debt levels as a major future risk, suggesting that scarce assets like Bitcoin are uniquely suited to this scenario.

This favorable inflation data arrives amidst an already bullish macroeconomic backdrop. U.S. equity markets are soaring, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all charting new record highs. This widespread risk-on sentiment in traditional finance often creates a positive spillover effect into alternative assets like Bitcoin. Furthermore, the expansion of the U.S. M2 money supply, which has reached a record $21.9 trillion, adds another layer of support. As the money supply grows, investors increasingly seek out hard assets to preserve their purchasing power.

This broad market strength is not confined to Bitcoin. A look at key trading pairs reveals a risk-on appetite spreading to altcoins. The ETH/BTC pair is up over 1.6%, while the SOL/BTC pair has gained nearly 2%. Most notably, the AVAX/BTC pair has surged by an impressive 6.73% in the last 24 hours, trading up to a high of 0.00022890 BTC. Strong performance is also visible in LINK/BTC and ADA/BTC, both showing healthy gains. This indicates that capital is flowing more freely within the crypto ecosystem, a classic sign of a strengthening bull market.

Analysts predict that if the current momentum continues, Bitcoin could experience a strong bullish breakout, with the initial target level set at $112,000. A break above that level could trigger a rapid move to $120,000. According to the analyst's forecast, Bitcoin's value could increase by 24.82% and reach $135,086.33 by July 8, 2025. This forecast is based on technical indicators that signal a bullish trend for Bitcoin.

In summary, Bitcoin's price is currently consolidating just below the $110,000 barrier, with analysts predicting a potential surge to new all-time highs. The favorable U.S. inflation data, along with the bullish macroeconomic backdrop, has provided a significant bullish catalyst for Bitcoin. If the current momentum continues, Bitcoin could experience a strong bullish breakout, with the potential for further gains in the near future.