Key Points
- The US CPI data for April showed a slight increase of 0.3%, which was lower than the expected 0.4%.
- This resulted in a relief in the market, leading to a 5% increase in Bitcoin’s value.
The latest US CPI data for April has been released, showing a rise of 0.3%. This is slightly less than the anticipated 0.4%.
This data is crucial for Federal Reserve rate decisions and is used to track consumer expenditure on goods and services to measure inflation.
Impact on Bitcoin
The CPI data suggested a slight cooling of inflation in April, providing a much-needed break for markets. This had a positive impact on Bitcoin, which saw a significant increase in value.
Bitcoin’s price increased by over 5% following the release of the CPI data, surpassing its short-term spot supply level of $63k. At the time of writing, Bitcoin was trading well above $65,000.
Future Predictions
Crypto-trader and analyst, Skew, shared a similar projection after the CPI data was released. He noted that the spot supply is now around $65K and that the spot taker flow will be vital for maintaining the bullish trend.
However, despite the slightly lower CPI reading, the Federal Reserve may wait for confirmation of slow inflation before deciding to cut interest rates.
Bitcoin’s price action is heavily influenced by Fed rate expectations. Therefore, a clear price direction can be expected after the Federal Reserve meeting in June.
Until then, Bitcoin’s value could continue to fluctuate within the $60K—$70K range until the next Fed rate decision is made.
