This week, important economic data will come from the US for Bitcoin. The first of these, the CPI data, was announced yesterday and came in below expectations.
US PPI data will be released today.
At this point, while the decline in inflation is seen as positive for Bitcoin (BTC), 21Shares analyst Matt Mena said that the lower-than-expected US inflation data has prepared the necessary ground for Bitcoin to reach $200,000 by the end of the year.
Mena stated that inflation data will fall further and that as the macroeconomic outlook becomes clearer, Bitcoin reserve and ETF inflows will accelerate and the price will rise.
Mena thinks Bitcoin could reach $200,000 by the end of the year.
“This cooling trend in inflation strengthens the case for a possible easing of policy later this year.
As the Fed’s June meeting approaches, the focus is now shifting to how quickly policymakers can respond to cooling inflation and changing macro clarity.
At this point, yesterday’s inflation data could act as a bullish catalyst for Bitcoin and bring the $200,000 target forward by a few months.
“If disinflation momentum continues to build, $200,000 is now firmly in play for Bitcoin by the end of the year.”
The 21 Shares analyst recently said that rising spot ETF inflows, regulatory progress and US President Donald Trump’s BTC strategic reserve plan could accelerate Bitcoin’s rise above the $105,000-$110,000 range and push it above $138,000 by summer.
*This is not investment advice.