Bitcoin maintains stability above $80,000... "Inflation indicators determine its fate"

▲ Bitcoin (BTC) and US Dollar (USD) ©Go Dasol

As Bitcoin (BTC) successfully held above $80,000, stronger than expected, the market is once again focusing on whether the uptrend will continue.

According to investment media FXStreet on May 11 (local time), Bitcoin is currently maintaining its most stable trend above $80,000 since February of this year. Analysis suggests that the strong risk-on sentiment formed during the recent tech stock-led rally in the US stock market is spreading to the Bitcoin market. However, Ethereum (ETH) has not yet succeeded in recovering the high it recorded in early April.

The media outlet assessed that the inflow of funds into Bitcoin spot ETFs is currently supporting the market. It explained that while a powerful catalyst to explosively boost the entire cryptocurrency market has not yet emerged, the steady inflow of institutional funds is firmly supporting Bitcoin's price floor.

The market is also keenly watching the direction of the US cryptocurrency market structure bill, the Clarity Act. Although the bill has already passed the US House of Representatives, there are predictions that Senate passage could be more difficult. Especially with a tight legislative schedule before the midterm elections, the debate surrounding the stablecoin compensation framework is emerging as a key variable for the bill. The media outlet analyzed that discussions on the stablecoin compensation structure, which investors might find somewhat complex, could effectively determine the future direction of the entire cryptocurrency industry.

The biggest variables this week are US inflation indicators and global oil price trends. The media outlet assessed that while the US corporate earnings season is nearing its end, tech-heavy markets like Nasdaq showed a very rapid recovery after the sharp decline in March. However, it diagnosed that skepticism among global investors regarding the economic outlook still remains, with the exception of some markets such as KOSPI.

In particular, although US employment figures were stronger than expected, concerns were also raised that the global economy as a whole has entered the early stages of an energy crisis or is already being affected. The media outlet predicted that while the US economy appears relatively strong, it will ultimately be difficult to remain free from the impact if global energy instability and inflationary pressures persist.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*