On May 13, Bitcoin (BTC) experienced a notable sell-off at the Wall Street open, failing to capitalize on lower-than-expected US Consumer Price Index (CPI) data. The CPI report indicated a 2.3% year-over-year increase for April, down from 2.4% in March, marking the smallest annual rise since February 2021. Despite this encouraging inflation news, BTC/USD struggled to reclaim the $104,000 support level, reflecting a broader bearish sentiment in the market.
As US stocks opened higher, with the S&P 500 and Nasdaq Composite Index gaining 0.7% and 1.4% respectively, traders noted that Bitcoin was navigating through nearby order book liquidity. Daan Crypto Trades highlighted the potential for fresh volatility, suggesting that the market was poised for significant movements in either direction.
Market analysts, including Michaël van de Poppe, expressed a tempered outlook, indicating that even a dip to $97,500-$98,000 would still keep Bitcoin in an upward trend, setting the stage for potential all-time highs. Meanwhile, Richard Teng, CEO of Binance, remarked on Bitcoin’s “undeniable” momentum, asserting that it has outperformed traditional assets like gold and major stock indices since early April.
As Bitcoin continues to oscillate between its roles as “digital gold” and a risk-on asset, the market remains in a state of flux. The interplay between bullish and bearish forces suggests that traders should remain vigilant as BTC seeks direction in the coming days.
