How Did Bitcoin React to US CPI Data?

Last updated: 15.05.2024 – 06:58

Highly anticipated by cryptocurrency and traditional markets US inflation data The CPI was finally announced. According to the news from the USA, CPI increased to 3.4% in the last 12 months, revealing that the upward trend in prices continues. Analysts’ expectation was that the rate would decrease to 2.9%. Bitcoin Its price also exceeded $64,000 after the announcement and increased by more than 4% in total.

Consumer prices in the US rose less than expected in April, signaling a potential slowdown in inflation at the beginning of the second quarter. did. This news increased hopes in financial markets for a possible interest rate cut in September.

Consumer price index (CPI) increased by 3.4% in the 12 months ending in April, a slight decrease compared to the 3.5% increase in the previous month, March. Indeed, the data means that progress in containing inflation has stalled, with the annual increase still significantly above pre-pandemic levels (9.1% in June 2022).

The Bureau of Labor Statistics found a 0.3% increase in the consumer price index last month, following increases of 0.4% in March and February. This latest data points to a slowdown in price growth, consistent with expectations that inflationary pressures will gradually ease in the coming months.

At the same time, Core CPI, which excludes food and energy prices, increased by 0.3% monthly, in line with Wall Street forecasts. On a year-on-year (YoY) basis, Core CPI increased by 3.6%, slightly below the 3.8% increase observed in the previous month.

Bullish Predictions Begin to Arrive for Bitcoin

After the CPI report was announced, the Bitcoin price experienced a sudden increase, rising from $ 61,800 to approximately $ 64,000. This means an increase of 3.8%. At the same time, Bitcoin’s transaction volume increased by 10.9% and reached 28.8 billion dollars, while its market value was recorded as 1.25 trillion dollars.

Writer Hasan Hüseyin Lif about :

He is a ‘sociologist’ interested in politics, economy and migration. My interest in blockchain technology first led me to KoinFinans. I have been preparing articles about the industry, especially cryptocurrency news, for about three years.

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