To gauge what’s next, it helps to look back at recent steps.
Notably, the crypto market started the third week of this month with solid momentum, increasing the TOTAL market cap by 4.45%, or about $130 billion at once, putting risky assets back in the green.
Of course, Bitcoin [BTC] followed suit, rising 5% to $95,000, pushing its market cap above $1.9 trillion. However, if you look closer, this accounts for about 61% of the total market flows, underscoring that the rally was “BTC led.”
Source: TradingView (BTC MARKET CAP)
Moreover, Bitcoin’s move was not random. Instead, “stability” in the US economy appears to have driven the increase. As AMBCrypto noted, the CPI came right in line with estimates at 2.7% annualized.
Meanwhile, the core CPI came in at 2.6% annualized (vs. 2.7% expected), which is the lowest in almost five years. Essentially, this points to a stabilizing inflation background. However, the story didn’t end there.
Earlier this month, chances of a rate cut fell as Fed Chairman Jerome Powell reinforced his hawkish stance. Yet this is clearly the case in this latest CPI release put pressure on himmaking it one of many catalysts driving Bitcoin’s rally.
Macro confidence increases as Bitcoin sets its sights on $100,000
This post-CPI rally could mark a turning point for Bitcoin.
According to AMBCrypto, this move underlines how macro catalysts continue to drive flows. Against this backdrop, progress on the CLARITY and GENIUS laws, combined with cooling inflation and a softening labor market, could help extend the current momentum.
Matt Mena, Crypto Research Strategist at 21Shares, even predicts a near-term target of $100,000, with Bitcoin’s 5% rise strengthening its role as a market hedge amid continued geopolitical pressure on the global economy.
“Looking ahead, several catalysts could push Bitcoin towards $100,000. Cooling inflation and stable employment data support the case for rate cuts this year.”
He added:
“On the news, Bitcoin broke above $92,000 and is now consolidating around that level. Bitcoin is increasingly seen as a macro hedge amid rising geopolitical tensions.”
In support of this statement, this move is driven by spot demand and not leverage.
Simply put: Bitcoin investors seem to be positioning prior to a bull run.
In this setup, $95k looks less like a top and more like a base that could serve as a springboard to six figures, driven mainly by macro tailwinds.
Final thoughts
- Bitcoin’s move to $95,000 accounted for roughly 61% of total market flows, highlighting a spot-led rally amid stabilizing inflation and macro confidence.
- Macro catalysts (including a cooling CPI, softening labor data, and progress on the CLARITY and GENIUS laws) position BTC for a potential breakout towards $100,000.