Bitcoin, Ethereum, Dogecoin See Long-Sought Relief Rally On Favorable Inflation Data Numbers: Analyst Forecasts $68K-$69K As Next Test For King Crypto

The cryptocurrency market ushered in a strong rally Wednesday, following lower-than-expected retail inflation data. 

What Happened: Bitcoin soared past $66,000 for the first time in three weeks, lifting more than 7% in the last 24 hours. The second-largest cryptocurrency, Ethereum, followed suit, breaking $3,000 following gains of nearly 5%.

The rally brought commotion to the market, triggering liquidations worth more than $150 million in the last 24 hours. Short liquidations surged past $110 million.

The surge boosted speculative interest, with Open Interest for Bitcoin Futures reaching a one-month high of $32 billion, an 8.64% gain in the last 24 hours.

The market rallied as monthly inflation in the U.S. grew 0.3% from March, below analysts’ estimates of 0.4%, according to data released by the Bureau of Labor Statistics. The softer-than-expected numbers raised expectations of easing monetary policy, resulting in increased capital inflows in the risk-on markets.

Top Gainer (24 Hour)

The global cryptocurrency market cap stands at $2.39 trillion, expanding 6.56% in the past 24 hours.

The stock market reacted with the same fervor, reaching record highs on Wednesday. The S&P 500 breached 5,300 for the first time, ending at 5,308.15 following a 1.17% uptick. The Dow Jones Industrial Average gained 349.89 points, or 0.88%, to close at 39,908.00, while the tech-heavy Nasdaq Composite also ended at a record high of 16,742.39, gaining 1.4% during the trading session.

U.S. Treasury yields sank lower, with the rate on the 10-year note dropping by 3 basis points to 4.323%, providing a further boost to the stocks.

See More: Best Cryptocurrency Scanners

Analyst Notes: Popular cryptocurrency analyst Kevin highlighted Bitcoin’s falling wedge/bull flag pattern, predicting the next target as $68,000–$69,0000, a level that could offer significant resistance.

“Looking good thanks to the solid macro data we got the last two days from last month’s inflation revisions to Core CPI today,” the analyst remarked.

Another noted technical analyst, Rekt Capital, discussed the beginning of the altcoin market’s bottom, which might lead to an altcoin season that traders have long sought.

“Whether Altcoins start bottoming now in mid-May or a little later in end of May, early June…The window for Altcoin bottoming has just begun.”

Photo by Matt Benzero on Shutterstock

Read Next: Spot Bitcoin ETFs See $100M Inflows On Wednesday Amid Institutional Adoption