According to a crypto analyst, Bitcoin will have to witness a slowdown in US inflation once results are published next month before it can start to think about exceeding its all-time highs attained in March.

Impact of CPI on Bitcoin Prices

In a May 29 study ahead of the United States Bureau of Labor Statistics’ (BLS) publication of the Consumer Price Index (CPI) findings on June 12, Ten-x Research head researcher Markus Thielen said, “If inflation prints 3.3% or lower, Bitcoin should make a new all-time high.”

This is a 0.1% point drop from the previous CPI figure, which came in at 3.4% on May 15. Thielen expects spot Bitcoin exchange-traded funds (ETF) inflows to “remain strong” in the two weeks leading up to the publication of the May CPI numbers.

On the other hand, momentum may fade if CPI numbers show to be higher than projected, as seen this year.

Since May 13, spot Bitcoin ETF inflows monitored by Farside Data have been positive daily over the previous two weeks, with the largest day of overall inflows on May 21 at $305.7 million.

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According to Thielen, Bitcoin’s price is not “random; it all comes down to critical drivers; inflation is the main driver.”

Several times this year, the price of Bitcoin dropped after CPI readings exceeded predicted levels.

The CPI came out printed on April 10 at 3.5%, only 0.1% over the projected level. A few weeks later, on April 30, Bitcoin’s price fell 6.67% to $56,000.

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Though there were $611 million in inflows on the first day, Thielen observed that when spot Bitcoin ETFs debuted on January 11, the remainder of January’s inflows were meager.

He said that the primary cause of this was printed CPI numbers that were “higher than expected.”

“The CPI came in at 3.4%, greater than the 3.2% expected number and higher than the 3.1% recorded in the previous month,” Thielen said.

He said, “It is no coincidence that Bitcoin was weak in January and stronger into March but consolidated for two months.”