Bitcoin (BTC) looks set to challenge range highs on July 13 as fresh macroeconomic data bolsters risk asset bulls.

BTC/USD 1-hour chart. Source: TradingView

PPI shows U.S. inflation falls more than expected

Data from Cointelegraph Markets Pro and transaction view Follow the market as BTC price focus turns above $30,500.

U.S. producer price index (PPI) data released on the day was again lower than expected, helping to quickly dampen inflation expectations.

However, with two weeks to go until the Fed decides on interest rate policy, the market itself still believes another rate hike is next despite the PPI and CPI data released the previous day.

According to data from CME Group Fed Watch ToolAs of this writing, almost 95% are betting on a 0.25% hike.

Fed target rate probability map.Source: CME Group

“It’s not an exaggeration to say that everything points to further inflation in the coming months and quarters (even if energy rebounds from here). “Core CPI is decelerating so quickly that people will Shocked. ” wrote part of the follow-up.

Franzen believes that the decline in inflation directly affects the rebound of BTC prices in 2023.

“Noticing what’s been going on in the stock market this year? Notice how bitcoin is up 86% year-to-date? Asset prices are diverse, but a big part of the upward momentum is deflationary,” he explained.

Analyst Gives Bitcoin Breakthrough $38,000 Target

For Bitcoin itself, the sentiment is more bullish.

Related: Will Bitcoin Catch Up?BTC was at $40k when the dollar was so weak before

In addition to PPI, there is news that Europe will launch its first bitcoin spot exchange-traded fund (ETF) this year.

Michaël van de Poppe, founder and CEO of Trading Eight, hopes the time for a breakthrough will come soon.

“Bitcoin at $30,200 is likely to start looking for range tops again,” he said explain About overnight bitcoin price movements.

“One more test and we’ll break $38,000 quickly.”

Another tweet of the day gave Downside target at $29,300 If the $30,000 support fails to hold.

BTC/USD annotated chart. Source: Michael van de Poppe/Twitter

Others, including popular trader Skew, said that while the range remained stubbornly in place, a return to the trend wasn’t far off.

Meanwhile, fellow trader Jelle with eyes A triangle formation just below the “key” resistance at $31,000.

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