The Bitcoin price remains stable, as the investors seem to have shrugged off the inflation concerns, especially after the latest U.S. Consumer Price Index (CPI) release. Notably, the market participants were eagerly waiting for the U.S. CPI data, especially after the recent U.S. PPI data showed that the inflation has soared more than expected.

Meanwhile, the inflationary pressure has so far weighed on the investors’ sentiment, with anticipating soaring over a potential hawkish stance by the Federal Reserve.

U.S. Core CPI Soars 3.6%

The recent data from the U.S. Labor Department showed that the U.S. Consumer Price Index (CPI) rose by 0.3% in April, lower than the market expectations of 0.4%. Notably, the CPI rose at the same rate in the prior month. On an unadjusted basis, the U.S. CPI, a key figure to understand the inflation level, advanced 3.4% on a year-over-year (YoY) basis, in line with the market expectations.

Simultaneously, the Core CPI, excluding food and energy prices, rose 0.3% on a monthly basis, in line with the Wall Street estimates. On a YoY basis, the Core CPI jumped 3.6%, after soaring 3.8% in the prior month.

Notably, although the inflation seems to be cooling, it still stays higher than the Fed’s 2% target range, weighing on the global investors’ sentiment. However, despite that, the investors seem to be lauding the better-than-anticipated figures.

For context, the latest U.S. PPI inflation data comes in more than the market was expecting. Following that, Federal Reserve Chair Jerome Powell reiterated the central bank’s stance with their rate hike plans.

Also Read: Bitcoin Whales Drain 15400 BTC From Coinbase In A Day, Price To Rally?

Bitcoin Price Rallies

On Tuesday, Fed Chair Jerome Powell said that the inflation is still high and considering that, the central bank might keep the interest rate unchanged for an extended period. Notably, the inflationary pressure has kept a flurry of investors on the sideline, triggering heightened volatility in the market.

However, the recent CPI data seems to have offered some relief to investors, lowering concerns over a more hawkish step by the Federal Reserve. According to the CME FedWatch Tool, there is a 96.9% chance that the central bank will hold on to the current interest rate level at their upcoming June meeting.

Meanwhile, following the CPI data, the U.S. 10-year Bond Yield fell 2.07% to $4.354, while the U.S. Dollar Index plunged 0.42% to $104.455. However, despite the spike in the PPI inflation data that has fueled concerns, it seems that the investors are focusing on other areas for now.

For context, the Bitcoin price rose 3.48% during writing and traded at $63,656.35, after touching a 24-hour high of $63,773.87 in the last 24 hours. The one-day trading volume of the flagship crypto also surged 8.77% to $27.82 billion.

Additionally, the Bitcoin Futures Open Interest (OI) also rose 1.75% over the last four hours to 474.38K BTC or $30.25 billion, CoinGlass data showed. This reflects that the investors are still moving with their risk-bet appetite after the cooling inflation data.

Also Read: Interactive Brokers Debuts BTC, ETH, & Other Crypto Trading Services In the UK

The post Breaking: Bitcoin Rallies After Cooling US CPI Inflation Data appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am