Bitcoin price faced increased volatility following the release of the latest US CPI data, but managed to post impressive gains and is now above $58,000.

Most altcoins followed suit, with BNB and ADA posting daily gains of 5-6%, surpassing $540 and $0.35 respectively.

BTC Above $58K

Bitcoin’s fortunes were not encouraging over the weekend, as the asset fell below $53,000 on Friday but held mostly above $54,000 on Saturday and Sunday. The start of the new working week began with a small gain to $55,000 before the asset quickly rose to over $58,000.

After failing to break above that level twice by Wednesday, it fell sharply to $55,500 following the release of the US CPI data. They are especially significant for investors as the next FOMC meeting is scheduled for next week, with the Fed expected to cut interest rates by 25 basis points.

BTC initially reacted poorly to the news, falling from $57,000 to $55,500. However, bulls regrouped and began a notable rally in the hours that followed, pushing Bitcoin to an 8-day peak of nearly $58,500 earlier today.

On-chain indicators suggest Bitcoin’s ‘sideways summer’ is over

Bitcoin miner profitability is hitting multi-year lows, while futures traders are unusually bullish.

After six months of sideways decline, analysts say multiple on-chain indicators suggest Bitcoin may finally be poised for an “epic” price breakout.

These forecasts are in line with some predictions of an upcoming bull market based on seasonal factors, as Bitcoin is set to go from one of its worst to best months ever.

Market analysts note that Bitcoin’s Puell Multiple has hit a low of 0.4 for the first time since late 2022 — the absolute bottom of Bitcoin’s most recent bear market after the FTX crash.

The Puell Multiple is a ratio that compares BTC’s daily issuance in US dollars to its 365-day moving average. It is a measure of miner profitability and is often used to determine market highs and lows, as miner behavior can significantly impact price movements.

“The Puell Multiple is approaching levels where it has historically signaled buying opportunities,” the analyst wrote. “Investors looking for a long-term accumulation phase may interpret the current Puell Multiple of around 0.4 as a sign that Bitcoin is undervalued or at least approaching a market bottom.”

Bitcoin’s hash rate hit a new all-time high earlier this week, meaning it’s more competitive than ever for miners to mine a Bitcoin block. Meanwhile, the BTC price drop and April’s BTC halving have significantly reduced the financial rewards associated with successfully mining a block.

Another fact behind Bitcoin’s price rise is that the number of active addresses on the network has fallen to a low last seen in July 2021, shortly after China’s mining ban.

Bitcoin Preparing for October

On Wednesday, the average funding rate for Bitcoin perpetual futures turned negative for the first time since September 2023. In a bull market, this is seen as a signal for growth.

Experts tend to think that while Bitcoin usually performs poorly in September, the following two months are usually some of its most productive periods. For example, BTC grows by 29.5% on average in October.

Central banks are also cutting interest rates right now, which is usually a positive for all financial assets. The ECB cut its deposit rate by another 12 basis points on Thursday.