William Suberg9 hours agoBitcoin price taps $64.7K as US CPI shows core inflation at 3-year lowBitcoin gets a much-needed boost from increasing optimism about the Federal Reserve’s course to cutting interest rates.4758 Total views17 Total sharesListen to article 0:00Market UpdateOwn this piece of crypto historyCollect this article as NFTJoin us on social networksBitcoin (BTC) passed $64,000 on May 15 as United States core inflation hit three-year lows.BTC/USD 1-hour chart. Source: TradingViewBitcoin advances as CPI beats expectations
Data from Cointelegraph Markets Pro and TradingView showed local highs of $64,700 for BTC/USD after the Wall Street open.
Bitcoin bulls received a boost from the latest United States Consumer Price Index (CPI) print, which beat expectations in a win for risk assets. Both the S&P 500 and Nasdaq Composite Index hit all-time highs.
Month-on-month CPI came in at 0.3% for April, 0.1% below expectations, with other figures conforming to predictions.U.S. CPI chart. Source: Bureau of Labor Statistics
In so doing, core inflation fell to its lowest levels since 2021 — potentially bolstering the case for interest rate cuts.Source: Tedtalksmacro
Reacting, however, not everyone was so optimistic.
“This marks the first decrease in CPI inflation over the last 3 months. However, PPI inflation data yesterday showed a third straight monthly increase,” trading resource The Kobeissi Letter wrote in part of a thread on X. “The Fed will remain in wait and see mode.”
Kobeissi referred to the previous day’s Producer Price Index (PPI) numbers. Jerome Powell, hair of the Federal Reserve, nonetheless maintained a dovish tone at a subsequent speaking appearance.
“I wouldn’t call it hot, I’d call it mixed,” he said when asked about the PPI data, as quoted by Reuters.
Market odds for near-term rate cuts nonetheless remained mostly unmoved on the day, with a mere 3.1% betting on a June cut and 28.3% for July, per data from CME Group’s FedWatch Tool.Fed target rate probabilities for July FOMC meeting. Source: CME GroupBTC price support reclaim in focus
Turning to Bitcoin, the picture on exchange order books shifted considerably on the CPI reaction.
Related: Bitcoiner who called pre-halving all-time high predicts $95K BTC price
Data from monitoring resource CoinGlass showed price eating through liquidity to the upside, with a new block forming above the highs around $65,000.BTC liquidation heatmap (screenshot). Source: CoinGlass
Commenting on the current landscape, popular trader Skew said that spot buyers needed to keep up the pressure and reclaim the 200-period exponential moving average as support on four-hour timeframes, currently at $63,195.
“Ideally BTC leads strength from here, would need to flip $65K still for market confidence to return imo,” part of a further X post continued.BTC/USD 4-hour chart with 200EMA. Source: TradingView
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Bitcoin# Federal Reserve# Bitcoin Price# Markets# InflationAdd reaction