Why Did Bitcoin (BTC) Price Rally Today? What might happen to the price next? Here is Analysts’ Opinion

Following the announcement of the consumer price index (CPI) for April, which showed that the inflation rate in the USA decreased. Bitcoin It experienced its most significant increase since March. BTC price increased significantly along with US stocks today.

The consumer price index (CPI), a comprehensive measure of the cost of goods and services at the point of sale, rose 0.3% from March, according to a report from the U.S. Department of Labor’s Bureau of Labor Statistics. This figure was slightly below Dow Jones’ estimate of 0.4%. Despite this, consumer prices continue to increase by 3.4% on an annual basis.

Oppenheimer analyst Owen Lau stated that the CPI being slightly lower than expected increases the possibility of an interest rate cut. He noted that interest rate cuts continue to have a strong impact on Bitcoin’s price. “After ETFs and halving, the next big catalyst is a rate cut. “Until we see a clearer path for a rate cut, Bitcoin is likely to stick with macro data points and trade alongside them,” he said.

According to analysts, the core CPI in the USA has decreased for the first time in six months, investors cryptocurrencies It may lead to a revival in the appetite for riskier assets such as This could lead to an increase in flows into Bitcoin spot ETFs, which have been particularly inactive over the past week, according to 21Shares analyst Leena ElDeeb.

However, ElDeeb added a note of caution, saying the recovery could be slow due to ongoing uncertainty regarding interest rate cuts. “Generally, higher interest rates make risky assets such as technology stocks and Bitcoin less attractive, as investors can earn significant returns from safer options such as U.S. bonds,” ElDeeb said.

*This is not investment advice.

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