Bitcoin surged over 6% on Monday, breaking above the crucial $66,000 level for the first time in several weeks. The cryptocurrency’s price action was fueled by a combination of positive inflation data and renewed optimism surrounding the U.S. presidential election.
According to Bitget Chief Analyst Ryan Lee, traders are closely watching this breakout, as it follows several failed attempts to breach this key resistance level. “If bitcoin can sustain this upward momentum, it could signal a significant shift in market sentiment,” Lee stated.
The rally in cryptocurrency markets was further supported by the latest U.S. Producer Price Index (PPI) report. The PPI came in at 0%, lower than the expected 0.1%, suggesting that inflationary pressures may be easing. This positive economic data boosted investor confidence in riskier assets like cryptocurrencies.
Lee noted that the PPI report could serve as a catalyst for further upward momentum in bitcoin’s price. “The tempered concerns over inflation have helped support the current rally and could pave the way for a year-end surge,” he said.
Looking ahead, Lee expects bitcoin to trade within a range of $50,000 to $80,000 by the end of the year. However, he also cautioned that the market could experience significant volatility in the first quarter of 2025.
“If key economic indicators remain favorable and bitcoin breaks past its current resistance levels, we could see further upward acceleration,” Lee concluded.
