As an experienced financial analyst, I’ve witnessed numerous market fluctuations and have grown accustomed to interpreting economic data releases. The recent 4% surge in Bitcoin’s price following the release of the Consumer Price Index (CPI) data for April 2024 is a clear indication of investors’ anticipation and optimism.
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.
After the US Bureau of Labor Statistics revealed the newest Consumer Price Index (CPI) figures, there was a slight rise in the cost of the leading cryptocurrency, pushing it close to $64,000. This marked a 4% jump within the preceding 24 hours.
During the same period, the Consumer Price Index for April 2024 recorded a figure of 3.4%. This was in line with the predictions.
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.
Reducing interest rates makes it less expensive to borrow money, increasing the appeal of riskier investments like Bitcoin. Many industry players anticipate that this monetary move could lead to a Bitcoin price surge as a result of the influx of new funds.
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2024-05-15 15:52