Bitcoin remains stuck inside a range, but solid inflows into spot ETFs suggest investors anticipate an upside breakout.
Bitcoin (BTC) is trying to build upon its gains above the psychological support of $70,000. The sentiment received a boost after the spot Bitcoin exchange-traded funds recorded the second highest inflows of $887 million on June 4, per Farside Investors data.
Analysts are closely watching next week’s United States Consumer Price Index (CPI) data. After the 0.1% drop in the CPI data on May 15, Bitcoin started a 7% rally over the following five days. 10x Research head of research, Markus Thielen, believes that if the year-on-year CPI is 3.3% or lower, it could propel Bitcoin to a new all-time high.
Fidelity Investments head of digital asset strategies Matt Horne said in a June 4 CNBC report that investors should consider a 1-5% allocation to Bitcoin. Such an investment will minimize risk even if Bitcoin were to go to zero, but it will benefit the portfolio if Bitcoin continues its uptrend.
