• Bitcoin and select altcoins have been consolidating near their recent highs, increasing the possibility of an upside breakout.
• The U.S. core PCE rose 4.4% from a year ago, meeting analyst expectations.
• 85% of the January rally was due to institutional buying.
Bitcoin has been making headlines with its incredible price surge over the past several weeks, with prices reaching all-time highs and exciting investors around the world. The rally has been so strong that prices have now largely been flat this week, demonstrating that market participants are confident that the rally will continue.
The positive sentiment has been further bolstered by the recent United States core personal consumption expenditures (PCE) data for December, which showed the slowest annual rate of increase since October 2021. The core PCE rose 4.4% from a year ago, meeting analyst expectations.
Recent reports have also suggested that the recent rally has been largely due to institutional buying, with 85% of the January rally being attributed to these buyers. This means that larger investors are now entering the cryptocurrency space, a sign that the market is maturing and becoming more mainstream.
The current market conditions are therefore very positive and suggest that Bitcoin and select altcoins could soon break out and resume the uptrend. Investors should keep an eye on the upcoming central bank meetings, as they could provide the trigger for a breakout. In the meantime, traders should stay alert and be ready to act when the opportunity arises.