The trading volume of exchange-traded funds (ETFs) linked to the top cryptocurrency has surged, signaling a bullish trend for Bitcoin. Despite a recent pullback in the broader cryptocurrency market, with Bitcoin dropping below the $67,000 mark, the increased ETF volume has sparked a significant price recovery for the asset.
On June 11, analysts at the on-chain platform Santiment highlighted that Bitcoin ETF volume had reached its highest level since May 15, indicating a potential price rally. The spike in volume suggests a higher likelihood of price fluctuations, with the recent surge likely triggered by buying activity during a dip. Investors are now anticipating a potential bounce in prices.
The price of Bitcoin had experienced notable declines in the days leading up to two key events that could impact its price action: the release of the US Consumer Price Index (CPI) report and the Federal Reserve (Fed) rate announcement. The CPI report, scheduled for June 12, is expected to show a year-on-year increase of 3.4% or a month-on-month increase of 0.3%. A lower than expected CPI could signal a slowdown in inflation, potentially leading to a crypto rally, while a higher than expected CPI could indicate ongoing inflation concerns, potentially resulting in a crypto crash.
Cryptocurrency analyst Ali Martinez shared a chart showing Bitcoin’s upward movement, suggesting that the asset tends to rally after each Federal Open Market Committee (FOMC) meeting. At the time of writing, the price of Bitcoin was hovering around $67,742.40, reflecting a 1.3% increase in the past 24 hours.
It is important to note that the views expressed in this article are for informational purposes only and should not be considered as financial or investment advice. Investing in cryptocurrencies carries inherent risks and may result in financial losses.