Bitcoin Bitcoin has suddenly shot higher, climbing after the latest U.S. inflation data showed price pressure has resumed its downward trend (with some speculating a "enormous" China earthquake could be just around the corner).

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The bitcoin price has topped $65,000 per bitcoin for the first time since early May as traders ramp up their bets the Federal Reserve will soon declare victory in its war on inflation and cut interest rates—though Elon Musk has recently joined other high profile investors in warning "stealth money printing" could destroy the U.S. dollar.

Ahead of the key inflation data that sent ethereum, XRP XRP and the wider crypto market higher, one bullish bitcoin investor predicted there's "$6 trillion in cash on the sidelines" that could power the bitcoin price to $150,000 this year—calling the latest bitcoin bull run "still early."

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"Bitcoin is still early in an upcycle," Tom Lee, Fundstrat Global Advisors managing partner and head of research, told CNBC. "So the idea that it can get to $150,000 this year is still within our base case."

The latest monthly U.S. consumer price index data showed the pace of inflation in the U.S. eased slightly in April, rising 0.3% versus 0.4% in March and against economist forecasts of 0.4%.

"I think it does help that the Fed is reiterating its view on inflation and its being relatively more dovish than where the market is," Lee said. "So I think that’s the process of why markets are recovering."

The bitcoin price has rocketed by around 75% since the beginning of the year, climbing along with expectations the Federal Reserve will begin to cut interest rates this year.

"We know there’s a lot of pent-up demand," Lee said. "Capital spending is picking up, the ISMs [international securities markets] are turning up, there’s $6 trillion in cash on the sidelines and people have been cautious for more than two years now."

However, some bitcoin and crypto market analysts have downplayed the Federal Reserve's long-term impact on the bitcoin price.

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"While Federal Reserve policies may induce short-term volatility, they do not fundamentally change bitcoin's long-term trajectory," Leena ElDeeb, research associate at bitcoin and crypto investment company 21Shares, said in emailed comments. "Therefore, bitcoin currently holds a unique position as a risk-on and risk-off asset, navigating unique market dynamics."

The bitcoin price rally this year has been turbocharged by a fleet of new Wall Street spot bitcoin exchange-traded funds (ETFs), opening up the bitcoin market large swathes of investors that see crypto exchanges as risky.

Last month, a major Wall Street bank leak suggested brokers could soon be given the green light to recommend the spot bitcoin ETFs to their clients.