Bitcoin price topped $61,700 on August 14, up 7% over the past two days. On-chain data shows increased whale demand from investment trust Grayscale, coinciding with dovish U.S. CPI data. Could BTC be on the verge of breaking through $65,000?
BTC up 7% in 48 hours
Bitcoin got off to a shaky start in August, but the cryptocurrency has gained steady upward momentum over the past week. The latest wave of Bitcoin’s rally can be attributed to Grayscale, a major institutional investor that announced new crypto asset offerings for its U.S. clients.
The uptrend began when Grayscale launched new crypto trusts for SUI, TAO, and MKR. The event, which took place on August 12, was hailed by investors as a deepening of institutional adoption in the crypto space. The bullish sentiment from Grayscale’s move has since spread to Bitcoin, sending its price higher.
As the chart above shows, the price of Bitcoin has risen by 7% over the past two days. On August 12, BTC was trading around $58,000, and by August 14, it had risen to $61,700. This price increase highlights the positive impact Grayscale’s actions have had on the market.
Bitcoin now appears poised for further gains driven by inevitable changes in the US macroeconomic situation.
Dovish CPI Could Lead to Further BTC Gains
Building on the momentum of Grayscale’s recent activity, Bitcoin’s price is also supported by favorable macroeconomic conditions. On August 14, the U.S. Bureau of Labor Statistics released its Consumer Price Index (CPI) data for July, providing additional bullish sentiment for Bitcoin.
As the chart above shows, the U.S. consumer price index rose 2.9% year-on-year, slightly below the 3.0% expected. Meanwhile, the core consumer price index, which excludes food and energy prices, rose 3.2% year-on-year, in line with expectations. These figures suggest that inflation is slowing, confirming the dovish monetary policy outlook.
The soft CPI report could be interpreted as a signal that the Federal Reserve may stop raising interest rates or even consider cutting them in the near future. Many market participants now expect interest rates to be cut as early as September. Lower interest rates typically lead to a weaker US dollar and increased demand for alternative assets such as Bitcoin.
The combination of Grayscale’s institutional moves and the soft CPI report makes a compelling case for an upward trajectory in Bitcoin’s price in the near term.
BTC Price Prediction: All Eyes On $65K Target
As Bitcoin continues its upward trajectory, strategic traders are keeping a close eye on the $65,000 target. Technical indicators on the chart below suggest that BTC is leaning towards a bullish trend, with key resistance and support levels now in focus.
Firstly, the Keltner Channels (KC) indicator highlights critical resistance at $65,000, while support has consolidated around $58,000.
If Bitcoin’s price breaks above the upper KC band at $65,000, it could trigger a strong bullish momentum, potentially pushing the price even higher. On the other hand, a break of the lower KC band at $58,000 could signal a prolonged correction, but this seems unlikely given the current market dynamics.
The outlook for Bitcoin price remains positive, supported by both institutional demand and favorable macroeconomic conditions.
