Why Did Bitcoin Soar Today? Analysis Company Comments: “The Rally Provided Major Relief”

Bitcoinsistemi2024/07/27 07:48

By:Mete Demiralp

There was an approximately 4 percent increase in Bitcoin today. So what is the reason and importance of the rise?

The cryptocurrency market experienced a surge today and major tokens showed positive growth. This upward trend occurred in parallel with the optimistic movements in the US stock markets.

The rally came after the US Federal Reserve announced a more moderate inflation rate for one of its primary data indicators. The U.S. Bureau of Economic Analysis reported that the personal consumption expenditures (PCE) price index rose 0.1% in June, up 2.5% from a year earlier. The annual rate fell slightly from 2.6% in May, confirming that inflation is steadily approaching the Fed's 2% annual target.

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Bitcoin has made a significant recovery, surpassing $67,000. According to analysts at Glassnode, this recovery has allowed Bitcoin to surpass its short-term cost base. This term refers to the average price at which short-term investors purchase Bitcoin assets. When the current Bitcoin price rises above this cost base, it shows that, on average, short-term holders are in a profitable position.

“The upward move provided much-needed relief for new investors, with over 75% of their supply back in profit,” Glassnode analysts added.

*This is not investment advice.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.