Bitcoin (BTC) Rises Toward $64K as April US CPI Numbers Came Out
TL;DR
- The price of Bitcoin rose 4% to nearly $64,000 as the Consumer Price Index (CPI) met expectations.
- Anticipation of the Federal Reserve potentially easing its anti-inflationary measures has fueled presumptions of a BTC rally as lower interest rates could increase investment in riskier assets.
The price of the primary cryptocurrency slightly increased after the US Bureau of Labor Statistics released the latest Consumer Price Index (CPI) data. It spiked to almost $64,000, witnessing a 4% surge on a 24-hour scale.
Meanwhile, the total CPI for April 2024 clocked in at 3.4%, which is exactly what the expectations were.
The Federal Reserve’s goal is to decrease the annual inflation to 2%. As such, it enforced multiple anti-inflationary policies in the past few years, such as rate hikes.
The latest CPI data is one of two releases before the next Federal Open Market Committee Meeting on June 12. America’s central bank hinted at a pivot on its aggressive anti-inflationary regime, but a rate cut isn’t expected until July at the earliest.
Lowering the interest rates makes money borrowing easier, potentially sparking more interest in riskier assets such as Bitcoin. Numerous industry participants believe such a step may fuel a BTC rally due to the fresh flow of capital.
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