Key Takeaways:
*Bitcoin broke above its previous record, trading over $124,000.
*Renewed rate cut expectations from central banks boosting crypto demand.
*Weak US CPI and Nonfarm Payrolls strengthen Fed easing outlook.
Market Summary:
Bitcoin continued its record-breaking rally, surpassing $124,000 and testing fresh highs. This bullish momentum is being fueled by a favorable macroeconomic backdrop, with renewed expectations for central bank rate cuts prompting investors to shift capital into cryptocurrencies.
Recent U.S. data releases, including lower-than-expected CPI and weaker Nonfarm Payrolls, have increased the likelihood of Federal Reserve easing. Rate cuts tend to support Bitcoin by reducing the opportunity cost of holding non-yielding assets and by boosting liquidity in the financial system, both of which can fuel demand for alternative assets like digital currencies.
Institutional activity has been a major driver of price gains. On Tuesday, Bitcoin ETFs saw $65.9 million in net inflows, while Ethereum ETFs recorded an impressive $523.9 million. Since last Friday, Bitcoin ETFs have accumulated $1.02 billion in inflows, underscoring sustained institutional appetite. Ethereum ETFs also marked a historic first—$1 billion in daily inflows—further validating crypto as an emerging mainstream asset class for pension funds and traditional investors.
On the policy front, expectations for crypto-friendly regulation remain high, with President Trump poised to sign a 401(k) reform that would allow retirement accounts to invest in digital assets. Such a move could unlock significant new demand from the $9 trillion U.S. 401(k) market.
BTC/USD, H4:
BTC/USD is currently testing the Fibonacci expansion resistance at 124,510.00. A confirmed breakout could extend gains toward the next resistance at 127,240.00.
However, technical indicators suggest caution. MACD shows signs of diminishing bullish momentum, while RSI at 71 signals overbought conditions and potential bearish divergence. If momentum fades, a retracement toward support at 121,785.00 or 118,410.00 remains possible.
Resistance level: 124510.00, 127240.00
Support level: 121785.00, 118410.00
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