Bitcoin price may have resumed its bullish momentum, following a cooler than expected April 2023 CPI report. The Consumer Price Index, a key measure of inflation, fell to 4.9% – lower than the expected 5.0%. As a result, crypto prices are climbing.
Bitcoin Price Reclaims $28,000 After April CPI Release
The Bureau of Labor Statistics released its monthly CPI report this morning, revealing that the key inflation measure dropped to 4.9%. Forecasts had called for 5.0%, so the metric came in lower than expectations. Core CPI was 5.5% in April, down from 5.6% in the month before. Rising inflation was a primary reason for the US Federal Reserve raising interest rates, which put a damper on global markets, including crypto. From the time rates began increasing until the bottom, Bitcoin fell by more than $40,000 in value.But with inflation now cooling off, the system starting to break, and a Presidential election ahead, markets may be about to price in a possible pause in rate hikes. In the minutes following CPI figures, Bitcoin price jumped over 2%, reclaiming $28,000 per coin.
Is Bitcoin ready to rally higher on CPI news? |
What’s Next For BTCUSD Price Action?
Bitcoin price has been consolidating around the crucial level, which is directly below the 2020 yearly close and 2021 yearly open. A forceful move above the high timeframe resistance level could send BTC soaring higher.
Remember: CPI is a lagging indicator. The stock market is a leading indicator. — Tony "The Bull" Severino, CMT (@tonythebullBTC)