Bitcoin Surges 0.89% to $103,014 on Softer U.S. Inflation Data

Coin WorldThursday, May 15, 2025 11:52 am ET
1min read

Bitcoin's price surged past $103,000, marking a significant milestone in its recent trajectory. The cryptocurrency reached a high of $103,014.00 per coin, although it experienced a slight decline of 0.49% on the day. This price movement came amidst a broader consolidation phase in the cryptocurrency market, with Bitcoin trading at $102,868 on Thursday morning, reflecting a 0.89% decrease over the past 24 hours.

The surge in Bitcoin's price was fueled by softer U.S. inflation data, which eased concerns about inflation and bolstered hopes for potential rate cuts by the Federal Reserve. This economic data provided a tailwind for the cryptocurrency market, contributing to an increase in its overall capitalization. However, despite the positive inflation data, the Federal Reserve's hawkish stance continued to influence market expectations, with rate cuts in the first half of 2025 being increasingly priced out.

Traders and analysts have been closely monitoring Bitcoin's price action, noting that the cryptocurrency has been consolidating around the $103,000 mark. This consolidation phase follows a period of strong buying pressure, with Bitcoin's price stabilizing in the short term. Traders are divided on the short-term outlook for Bitcoin, with some favoring further upside gains while others anticipate a period of sideways movement. The overall sentiment among traders remains bullish, with predictions favoring a return to volatility and potential breakouts to higher levels.

The macroeconomic environment continues to play a significant role in Bitcoin's price movements. The recent lower-than-expected Consumer Price Index (CPI) print failed to spark a fresh crypto rally, with traders now focusing on the Producer Price Index (PPI) numbers. The Federal Reserve's data-dependent stance and cautious approach to inflation and unemployment have led to adjustments in market expectations, with two rate cuts now expected for 2025, down from four just a month prior.

Despite the consolidation phase, Bitcoin's price has shown resilience, holding firm above the $103,000 mark. This bullish momentum has been supported by various factors, including commitments from major entities to crypto reserves. However, traders remain cautious, with some predicting that Bitcoin may need to reclaim the $108,000 level to achieve a breakout to higher levels, such as $120,000. The overall sentiment among traders is that Bitcoin is likely consolidating before its next upward push, with the macro picture looking tricky for risk assets as the Fed stays hawkish.

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