On November 15, the trading price of Bitcoin (BTC) reportedly spiked reaching a 1-week high in the process. The spike was recorded as the economic data showed the inflation rates are cooling off.
BTC Price Spiked to $17k
Prior to the latest trading session, the trading price of Bitcoin was hovering around $16.5k. However, the investors were not able to push it close to or over the $17k barrier.
It was a resistance level that could not be crossed without the involvement of a positive factor. This is when the government of the United States shared the PPI data that was promising for the economy.
It worked like a magic and Wall Street saw a great performance of the entire stock market. This meant that the investors’ trust is finally building up in investments.
Most importantly, the investors now have access to some extra money that they would like to invest in cryptocurrencies.
Therefore, a rally could be seen forming in favor of Bitcoin as the November 15 trading day began. The price of Bitcoin continued rising and it not only reached the $17k barrier but it also breached it.
This is because of the economic data shows that the inflation rates are lowering. This means that the government will have the opportunity of lowering its aggression by increasing the interest rates.
The latest developments have weakened the trading price of the dollar, helping digital currencies grow stronger.
BTC/USD Reached Multi-Day Highs
The data from TradingView shows that the trading price of the BTC/USD pair finally reached a multi-day high.
Prior to the announcement of the US Producer Price Index (PPI), the trading price of Bitcoin was almost stationary. There was not much of a movement in the trading price of BTC prior to the PPI data release.
The data that came out in the PPI was weaker than the expectations, which is a positive sign that the inflation rates are lowering.
Just as the announcement was made, the value of the BTC became highly volatile. This is the reason why its value rose to a higher trading level overnight.
On a month-on-month basis, the US Feds had set the PPI forecast to 0.4% but the actual PPI was 0.2%. On a year-over-year basis, the PPI forecast was set to 8.3% but the actual came out to be 8%.
As more positive data keeps coming in, the price of the dollar in the forex market would continue to weaken. This would eventually help cryptocurrencies to experience a rise in their values.
If the trend continues, Bitcoin may be able to cross the $20k barrier by the end of 2022.