Bitcoin Gains Stalled Amid Concerns Over Upcoming Inflation Data
This week, Bitcoin began to recover from previous losses, climbing above $90,000. However, doubts persist regarding the sustainability of these gains.
Inflation Data Impact on Bitcoin
- US inflation data is set to be released at 13:30 UTC today.
- Analysts predict a month-on-month increase of 0.3% and a year-on-year rise to 2.9%.
- Core inflation is expected to rise 0.2% month-on-month and 3.3% year-on-year.
- A weaker inflation report could negatively impact Bitcoin and other cryptocurrencies.
Stablecoin Supply Concerns
- Stablecoin supply has stagnated, with a cumulative supply of approximately $189 billion, showing only a 0.37% increase in the past month.
- This contrasts with late 2024 when over $27.3 billion entered the market, supporting Bitcoin's rise from $70,000 to over $108,000.
- Earlier in 2024, inflows of about $14.68 billion contributed to a 70% gain for Bitcoin.
The outlook for Bitcoin remains uncertain, hinging on the inflation report and new capital inflows into the stablecoin market.