Bitcoin price is rising today, responding positively to a mild CPI print and reaching an intra-day high above $70,000. Bitcoin’s $67,453 price rose to $69,483 after the Wall Street open on June 12, as markets responded to the Consumer Price Index (CPI) data and its implications for anticipated interest rate reduction in 2024. According to data from Cointelegraph Markets Pro and Coinbase, the BTC price increased by 2% within an hour, adding $1,760 to its worth as the May CPI print came in lower than projected.

Bitcoin rallies on cooler-than-expected CPI data

The Bitcoin price reacted to the May CPI figure, which remained unchanged, missing economist predictions for a 0.1% increase and falling from 0.3% in April, according to data from the United States Bureau of Labour Statistics (BLS). The year-on-year rate was 3.3%, 0.1 percentage points lower than expected. According to the BLS’s official publication, “the index for shelter rose in May, up 0.4 percent for the fourth consecutive month,” offsetting a drop in petrol.Immediately after the CPI data was posted, market participants began speculating whether the Federal Reserve would cut interest rates in 2024.

According to the CME’s FedWatch tool, traders expect five to six 25 basis point (bps) cuts this year. This had decreased to one or two before today’s CPI reading, with the first cut not due until September.The Kobeissi Letter responded to the CPI data announcement by stating that the markets have officially priced in two interest rate cuts this year. On whether the Fed is going to begin cutting interest rates, the global capital markets analysis firm said, “The odds of no cuts have declined from 33% to 24% in the last few minutes, according to @Kalshi. Meanwhile, the market’s expected odds of exactly two rate cuts have risen from 21% to 35%.

BTC short liquidations surge

BTC’s climb above $69,000 has accelerated the liquidation of crypto-leveraged positions. Crypto investor Crypto_0x observed BTC trading at $69,434 and stated, “The abrupt pullback resulted in over $250 million in liquidations of leveraged derivatives trading positions across all cryptocurrency assets.”

Coinglass data shows that in the last 24 hours, $101 million in long crypto positions were liquidated, compared to $86 million in short liquidations. Approximately $16.34 million of Bitcoin shorts were liquidated in the last four hours, compared to only $2.1 million in long positions. The greatest single liquidation order on OKX was for the ETH/USDT pair, worth $5.21 million.

Traders say rare indicator shows BTC price still bullish

Independent analyst Moustache provided Bitcoin’s weekly chart, revealing that the Bollinger Band Width Percentile (BBWP) indicator had issued an uncommon signal. The BBWP is derived from the Bollinger Band Width indicator and displays the percentage of bars over a set lookback period.

Moustache noted that this is the first time in Bitcoin history that the indicator “shows 4 blue bars.” “We’re talking about a volatility indicator here, which means: The more bars, the more volatility we can expect.”

Traders predict Bitcoin’s bullish price action to continue, ushering the market into the long-awaited bull run.The analyst believes the price will continue bullish as long as Bitcoin (BTC) maintains above the 20-week exponential moving average.

Buy and sell crypto in minutes with 0.20% trading fees at Bitdenex  Exchange.