- A minor colling down of the US inflation has given investors hope for a pause in the interest rate hikes by the Fed.
- On-chain data shows that Bitcoin (BTC) has once again entered the accumulation zone as investors gear up for the 2024 halving.
The world’s largest cryptocurrency Bitcoin (BTC) continues to show strength and is looking to form $30,000 as a strong support level. After the US CPI inflation data came on Wednesday, April 12, the BTC price saw some minor volatility, however, managed to hold strongly above $30,000.
For the month of March 2023, the US CPI numbers jumped by 0.1% against the expected 0.2%. The Core CPI, which doesn’t consider volatile food and energy prices, was according the estimated growth of 0.4%, down from 0.5% the month before.
This minor cooling down of the inflation data has given investors hopes that the Federal Reserve might pause its next rate hike during the FOMC meeting in May. However, nothing is off the tables as per Fed Chairman Jerome Powell.
On-chain data shows that investors have continued to add Bitcoin in recent times. Since January, the total number of wallets holding between one and 99 BTC and those with more than 10,000 BTC has surged. Similarly, wallets holding between 100 and 9,999 BTC have also been growing.
Since the beginning of 2023, Bitcoin has delivered a staggering 80% returns beating every other asset class by a wide margin. As of press time, Bitcoin (BTC) is trading 1.69% up at a price of $30.435 and a market cap of $588 billion.
London Stock Exchange to Offer Bitcoin Futures and Options Trading
In the latest development, the London Stock Exchange (LSEG) has announced that it will introduce Bitcoin futures and options trading into its offering. This will be Britain’s first regulated trading and clearing of Bitcoin futures and options derivatives. For this, the LSEG has joined hands with institutional-grade digital trading venues such as Global Futures and Options (GFO-X). The press release states:
“GFO-X is taking the first steps to extracting efficiencies from new technologies within a traditional market structure, with the goal over time of delivering 24/7 trading to global regulated digital asset markets.”
GFO-X has joined hands with LCH SA for the clearing of cash-settled cryptocurrency index derivatives. The two players have been further working with an advisory working group comprising the world’s leading trading firms, investment banks, and liquidity providers. The latest development is likely to give a boost to the institutional adoption of Bitcoin.
Additionally, some analysts think that investors are now gearing up for the 2024 Bitcoin halving event. Historically, the period before and after halving has proved to be bullish for Bitcoin investors and thus, this could be the beginning of a strong accumulation of Bitcoin.
Popular crypto analyst Ali Marinez points out the fees-to-rewards ratio which is a crucial indicator highlighting the financial stability of the Bitcoin network. As per Martinez, this ratio is growing boosting investor confidence and demand for BTC.
3/5 A higher ratio signals a healthy & sustainable network, boosting investor confidence & demand, and driving the price of $BTC higher. 📈
Conversely, a lower ratio might raise concerns about long-term sustainability, affecting the price of #BTC negatively. 📉 pic.twitter.com/moiCUqHiGJ
— Ali (@ali_charts) April 12, 2023
