Bitcoin price surges by 5% following milder-than-anticipated U.S CPI report

  • Exciting news alert: U.S CPI data shows a 0.3% rise, just below the expected 0.4% for April.
  • Great news for markets as BTC surges by +5% after April’s calm inflation numbers.

Good vibes in the market, especially for Bitcoin [BTC], after the latest U.S CPI data indicated steady inflation levels for April.

The U.S Bureau of Labor Statistics (BLS) reported a 0.3% increase in the Consumer Price Index (CPI) for April, slightly lower than anticipated at 0.4%. CPI is a crucial factor for Fed rate decisions and tracks consumer expenses to monitor inflation levels.

This data implies a mild decrease in inflation for April, giving the market a welcome break from recent low volatility.

Bitcoin on the Move, Targets $65K+

Recent analysis by AMBCrypto discussed how BTC could react to this week’s Fed events and macro trends. The CPI reading lent support to risk-on assets, with BTC showing impressive performance.

BTC surged by over 5% and surpassed the $63k resistance level on the chart. Currently, it’s trading well above $65,000.

Source: BTC/USD, TradingView

This move could change BTC’s market outlook to bullish on shorter timeframes, particularly the 4H chart, upon closing above it. Yet, a sustained bull trend on higher timeframes would require a decisive break above $66,000.

Prominent crypto analyst Skew, shared a similar post after the CPI release, mentioning Bitcoin’s rise above $63k and the importance of the $65k resistance area.

“Spot supply around $65K now. Thin spot books, so spot taker flow will be vital in order to trend with bullish pricing so far in risk assets”

Furthermore, the analyst highlighted $63k and $63.5k as critical support levels in case of a downturn.

Patience is Key

Despite the slight dip in CPI, the Fed may hold off on rate changes to confirm the slowdown in inflation.

As BTC’s movement hinges on Fed rate predictions, a clearer price trajectory might emerge post the June meeting. Until then, expect BTC to fluctuate within the $60K to $70K range until the next Fed announcement.

Next: Delving into the impact of Bitcoin ETFs on Galaxy Digital’s 40% surge

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