Bitcoin (BTC) gained 2.80% over the past 24 hours, touching $63,098, ahead of the release of United States macroeconomic data this week. Remarks from Federal Reserve chair Jerome Powell could create a volatile mix of risk assets, with significant implications for Bitcoin and crypto markets.
In addition to these market dynamics, all eyes are on the macroeconomic developments in the United States this week. The upcoming CPI release on May 15 will shed light on the inflation debate and the possibility of interest rate cuts. Furthermore, Federal Reserve Chair Jerome Powell's remarks on the economy will be closely scrutinized for any hints regarding future policy moves.
Bitcoin's ability to hold above the $60,000 zone is seen as crucial for the short-term outlook. Analysts are cautious about losing this level, warning of a potential revisit to previous lows. Conversely, if BTC can hold above $60,000, it could pave the way for further gains toward $64,000 to $67,000.
Meanwhile, long-term holders (LTHs) of Bitcoin are increasing their exposure to the cryptocurrency, mirroring the behavior observed during the 2021 bull market. On-chain data shows that LTH entities are accumulating coins at current low prices, intending to reintroduce them to the market during periods of hype. This trend suggests a cyclical pattern where long-term holders buy during bear markets and sell during bull markets, contributing to a growing share of Bitcoin being held by these entities.