Bitcoin Reacted with Growth to US Inflation Data
Bitcoin rose above $64,000 amid the release of the latest CPI data.
Market participants were eagerly awaiting CPI data this week, especially after the release of other data that showed inflation rising above expectations. Data from the U.S. Department of Labor showed that the U.S. Consumer Price Index (CPI) rose 0.3% in April, below market expectations of 0.4%. The US Consumer Price Index rose 3.4% year-on-year, which was in line with market expectations.
The core CPI rose 0.3% month-on-month and matched market expectations. On an annualized basis, core CPI rose 3.6% after rising 3.8% in the previous month.
The data points to a clear decline in inflation, but the reading is still far from the Fed's 2% expectation. On Tuesday, after the PPI data was released, Fed Chairman Jerome Powell said that inflation is still high and given that, the central bank may leave the interest rate unchanged for an extended period.
Meanwhile, after the CPI data was released, the U.S. dollar index fell 0.42% to $104.455. And Bitcoin showed a slight rise and climbed above $64,000 on momentum. The rise in 24 hours amounted to 3.26%. Despite Bitcoin's current rally, investors still remain inclined to invest in the major cryptocurrency. This is indicated by the open interest (OI) of Bitcoin futures, which has risen 1.75% in the last four hours.
