Bitcoin surges above $69,000 as core inflation drops to its lowest since April 2021, driven by better-than-expected US Consumer Price Index data.
The present data, according to experts, indicates that core inflation has decreased to its lowest level since April 2021.
Following a minor decrease in the most recent US Consumer Price Index (CPI) for May, the price of bitcoin has surged above $69,000.
The much-awaited US CPI inflation figures turned out to be better than many experts had predicted.
Charlie Bilello, Creative Planning’s Chief Market Strategist, stated:
“Overall, US CPI moved down to 3.27% year-on-year in May from 3.36% in April. US inflation has now been above 3% for 38 straight months. US Core CPI (ex-Food/Energy) moved down to 3.41% year-on-year from 3.62% last month. This is the lowest core inflation reading since April 2021.”
Bilello further mentioned how the US inflation rate has dropped significantly from its peak of 9.1% in June 2022 to its current 3.3% figure. “Lower rates of inflation in used cars, gas utilities, apparel, food at home, gasoline, medical care, fuel oil, food away from home, shelter, and electricity,” he continued, were the reasons behind the drop in these figures.
Bitcoin gains on a positive CPI.
Bitcoin’s price instantly responded favorably to the better-than-expected CPI data; as of press time, BTC had risen by more than 2% on the 1-hour candle to a high of $69,377.
IREN Energy board member Mike Alfred noted that the movement demonstrated that:
“Bitcoin already knows that CPI + Fed won’t be major bearish catalysts. It’s a highly intelligent global macro asset that prices in almost everything in advance.”
The US Federal Reserve, which will announce its decision on current interest rates later today, has drawn more attention from the market in the interim. Global Markets Analyst Jesse Cohen of Investing.com stated:
“The May CPI Inflation report could give the Fed the confidence to begin laying out the carpet for rate hikes in the months ahead. It’s going to take a minimum of three or four soft inflation prints before I think they’re ready to cut rates, but this would be a start.”
