Bitcoin (BTC) Spiked to New One-Week Highs on July 11 as United States Macroeconomic Data Delivered a Bullish Surprise

Data from Cointelegraph Markets Pro and TradingView showed a rapid but brief Bitcoin (BTC) $57,275 price climb to $59,516 on Bitstamp.

Bitcoin price enjoyed a brief rally into seven-day highs on July 11 as United States macroeconomic data provided a bullish surprise.

BTC price quickly erases a trip to one-week highs

Bitcoin price rose to a high of $59,516 on Bitstamp during the July 10 Wall Street trading session.

BTC

This followed the announcement of the June print of the US Consumer Price Index (CPI), which showed inflation slowing more than anticipated.

Both the year-on-year and month-on-month CPI came in 0.1% lower than expected, leading to a positive reaction across both crypto and US stock markets.

“The all items index rose 3.0 percent for the 12 months ending June, a smaller increase than the 3.3-percent increase for the 12 months ending May,” an accompanying press release from the US Bureau of Labor Statistics stated.

However, the initial gains proved short-lived, with BTC/USD quickly erasing the $1,000 it had initially added.

“Inflation coming down faster than expected. Local higher high for Bitcoin in response,” popular trader Jelle summarized on X.

$60,000 remained the key level on the radar for market participants, with fellow trader Wolf identifying it as a target for a resistance flip.

How GoMining is revolutionizing Bitcoin mining through NFTs

How can retail investors profit from Bitcoin mining after the halving slashed profit margins?

The 2024 Bitcoin halving event reduced the block reward to 3.125 Bitcoin (BTC). As a result, the supply of new BTC slowed down, and the profitability of mining companies plummeted. 

In a new report, Cointelegraph Research explores the current state of the mining ecosystem, including its economic conditions and technical developments. The report also covers new approaches to make Bitcoin mining open to retail investors, including GoMining’s gamified Bitcoin mining using non-fungible tokens (NFTs).

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The effect of the Bitcoin halving on mining profitability

Historically, the Bitcoin network’s hashrate has been volatile but follows an exponential growth trend. Significant deviations from this trend occur when miners are forced to upgrade to newer and more efficient hardware before each halving event and turn off older mining rigs after a halving event.

Although the total Bitcoin hashrate is increasing exponentially, the performance of individual mining rigs is advancing more slowly. 

“The 60-61.6k range is where the strongest resistance lies, due to horizontal and weekly 21EMA barriers,” he told X followers, referring to the 21-week exponential moving average at $60,900.

As Cointelegraph reported, other important lines in the sand within the Bitcoin bull market include the 200-day moving average and short-term holder cost basis, the latter still high above spot price at $64,088, per data from onchain analytics resource Look Into Bitcoin.

Short-term holders, the name given to the more speculative end of the Bitcoin investor cohort, held up to 2.8 million BTC at a loss when the price hit four-month lows of $53,500 last week.

BTC price sentiment beholden to Mt. Gox pressure

The mood overall, meanwhile, remained cautious as markets anticipated the start of the distribution of coins belonging to creditors of defunct exchange Mt. Gox.

Related: Bitcoin traders’ profit margins repeat 2022 bear market — New research

Crypto commentator Zen suggested that a BTC price “nuke” could still result as funds hit exchanges, with two days required for the market to rebalance itself.

That view also held beyond trading circles, with Jamie Coutts, chief crypto analyst at financial services firm Real Vision, arguing that it would ultimately be a cathartic process.

“While painful in the short term, the distributions of the Mt.Gox reserve and government sales remove the annoying supply overhang, helping distribute coins to a wider array of holders, thereby growing the network and leaving Bitcoin even better off than before,” he wrote on X on July 10.

Coutts referenced ongoing BTC sales from the German government, which Cointelegraph continues to report on.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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