Bitcoin ignores CPI results and regains $70,000 price level

The U.S. consumer price index (CPI) rose an annualized 3.8%, 10 basis points higher than economists expected. Analysts are currently uncertain about how the Federal Reserve will approach interest rate cuts in 2024, which could directly impact the performance of assets such as Bitcoin (BTC).

Despite the rapid 2% correction after the release of the CPI numbers, BTC has rebounded sharply and regained the $70,000 price level, gaining 1.8% in the past 24 hours.

Furthermore, according to a trader who identified himself as Recto Capital, Bitcoin is stuck in a narrow price range in the short term, starting at a record high of $69,000 and ending at $71,300. This situation opens up possibilities for future integration.

In an April 9 post on X, Rekt Capital highlighted that perhaps only “bargain buying opportunities” remain before Bitcoin breaks resistance and enters price discovery territory.

#BTC

Only 2 Bargain Buy Opportunities Left on Bitcoin Before Price Brings to Price Discovery

There is a retrace (dark blue circle) before the half-life.

Then there is the reaccumulation phase (red).

Bitcoin has already experienced a -18% pre-halving retrace… pic.twitter.com/OBkdTyMFr8

— Rect Capital (@rektcapital) April 8, 2024

More fundamentally, Fideum co-founder Darren Franceschini believes the better-than-expected CPI numbers mean “the future of Bitcoin is even brighter.”

“Given its limited supply and reputation as a solid hedge against inflation, Bitcoin naturally stands out as a solid hedge for investors riding out the rough waters of rising prices. Don't miss the event either. This periodic halving not only highlights the scarcity of Bitcoin, but also tends to generate great interest and speculation,” Franceschini added.

From the Fideum co-founder's perspective, this new macroeconomic development could increase Bitcoin's appeal to new investors seeking a safe haven and attract a new wave of capital to the market.

“This is an exciting time to be part of this journey, and I look forward to seeing how this convergence of economics and technology unfolds to shape our financial future,” he concluded.