Bitcoin price has recorded a slight upward movement on Friday, as the top cryptocurrency's chart pattern strengthens. BTC price saw a breakout pattern earlier this week, and the bulls are once again gaining upside momentum after a retest of the trendline. Meanwhile, new inflation outlook data has raised hopes of Fed rate cuts starting in September.

The University of Michigan Consumer Sentiment and 5-Year Inflation Expectations data was positive for the U.S. economy. Consumer sentiment for the US came in higher at 69.1 in May, while inflation expectations for the year-ahead declined to 3.3% from 3.5%, and the five-year inflation outlook was steady at 3%, unchanged from April and below an earlier reading of 3.1%.

As a result, the US dollar index (DXY) dropped to a low of 104.64, falling from the high dollar index of 105. The US 10-year Treasury yield also fell to 4.467%. As Bitcoin moves opposite to DXY and Treasury yields, the pressure has eased, and the CME FedFatch Tool indicates a 45% chance of 25 bps rate cuts in September.

Bitcoin Price Surges Ahead

BTC price jumped 3% in the past 24 hours, with the price currently trading at $69,000. The 24-hour low and high are $66,356 and $69,220, respectively. Furthermore, trading volume has increased by 7% in the last 24 hours, indicating a rise in interest among traders.

Coinglass data indicates that $22 million in Bitcoin short positions were liquidated in the last 24 hours, with the most liquidation happening in the last 12 hours. Over 75K traders were liquidated in the past 24 hours, with the largest single order liquidation happening on Binance as some traded ETHUSDC valued at $12.41 million.

Buying is recorded in futures and options, with total BTC Futures open interest rising across crypto exchanges. The CME Futures OI increased to $10.46 billion.

The positive US inflation data and the resulting impact on the Fed's monetary policy have provided a boost to Bitcoin's price. As the cryptocurrency market continues to evolve, such external factors can significantly influence the price movements of digital assets like Bitcoin. Investors and traders will be closely watching the Fed's actions in the coming months to gauge the potential impact on the crypto market.