Bitcoin price struggles to find support at the $52,000 level, but the next phase of consolidation could be beneficial to altcoins.
The S&P 500 Index (SPX) snapped its five-week winning streak and fell by 0.42% last week as the United States Consumer Price Index and Producer Price Index for January rose more than economists expected. Hot inflation reports increased concerns that the Federal Reserve may not cut rates till late in the year. Previously, market observers were anticipating a rate cut as early as March.
The adverse macroeconomic data has not affected Bitcoin’s (BTC) price, which rallied about 8% to finish the week at $52,137, its highest weekly close since November 2021. Although $52,000 has been acting as a resistance for the past few days, the Bitcoin bulls have not hurried to book profits. This suggests that the market participants remain bullish for the long term.
Another positive in favor of Bitcoin is that outflows from the Grayscale Bitcoin Trust (GBTC) have been slowing down. After bleeding $5.64 billion in January, the outflows from GBTC have slowed to $1.37 billion in February.
