The U.S. Department of Labor's Bureau of Labor Statistics (BLS) announced on May 15 that the April Consumer Price Index (CPI) annual growth rate was 3.4%, followed by May CPI data on June 12. Cryptocurrency research institution 10x Research released a report stating that if the CPI slows down from the previous month, Bitcoin can surpass the historical high set in March:
Assuming CPI falls to 3.3% or lower, Bitcoin will be able to reach new all-time highs.
Markus Thielen, chief researcher at 10x Research, said that in the first two weeks of the release of May CPI data, Bitcoin spot ETF inflows are expected to remain strong, but if the CPI results are higher than expected, the momentum may weaken, as was the case earlier this year Same.
Since May 13, in the past two weeks, Farside data shows that the average daily inflow of Bitcoin spot ETF has been positive, and on May 21, it set a record of daily average inflow of US$305.7 million.
CPI data affects Bitcoin trend
It is worth noting that 10x Research believes that there are no random fluctuations in the trend of Bitcoin. The key factor driving its trend is inflation. The price of Bitcoin will change direction based on whether the CPI data is higher than last month. CPI is higher than last month. Will fall, CPI will rise if it is lower than last month.
When the CPI data was announced on January 11 with an annual increase of 3.4%, higher than the expected 3.2% and higher than the 3.1% recorded last month, Bitcoin fell and the Bitcoin spot ETF trading volume was sluggish; when on February 13 When the CPI data released on the same day increased by 3.1% year-on-year, lower than the expected 3.4%, indicating that inflation was slowing down, inflows into Bitcoin spot ETFs gradually recovered.
When the CPI data rose again to 3.2% on March 12, the inflow of Bitcoin ETF funds immediately stopped; when the CPI data reached 3.5% on April 10, exceeding the expected 3.4%, Bitcoin fell again; when on May 15 Bitcoin rebounded when the CPI data reached the expected 3.4% and was lower than last month's 3.5%.
But 10x Research speculates that inflation will gradually cease to be an issue and become a moderate driver of growth, and may become a strong driver as the year progresses into late summer, as its model predicts a gradual decline in inflation.
