- Bitcoin’s price has surged following better-than-expected news on U.S. inflation.
- The U.S. Consumer Price Index (CPI) for March has risen slower than economists predicted.
- The positive news regarding the CPI data has led to some optimistic upside in crypto markets.
In a sudden turn of events, the price of Bitcoin (BTC) surged by nearly 1.5% to reach $30,430 following the release of positive news that beat expectations. According to the Bureau of Labor Statistics (BLS), the U.S. Consumer Price Index (CPI) rose by 0.1% in March, a slower pace than the 0.4% recorded in the previous month and below the 0.2% forecast by economists.
The year-over-year CPI was up by 5.0%, a decline from February’s 6.0% and below expectations of 5.2%. Meanwhile, the core CPI, which excludes the often-volatile food and energy prices, increased by 0.4% in March, matching the forecasts and February’s numbers.
The year-over-year core CPI stood at 5.6%, similar to February’s figures and forecasts. This report positively impacted the price of Bitcoin, which had already been on the rise earlier in the week, breaching the $30,000 mark for the first time since June 2022.
CPI Report Rallies Bitcoin: Is a Breakout Coming?
The recent bullish run of Bitcoin has been attributed to speculations that the U.S. Federal Reserve may halt its year-long interest rate hikes. The latest inflation figures may further fuel these beliefs, with Bitcoin popping back above the $30,000 mark within minutes after the report had been released.
Investors are now eyeing a clean trend breakout with the BTC price. Despite this, the market is bracing for possible volatility in the crypto market, as the CPI report has been known to trigger “fakeout” price action.
On the Flipside
- The Federal Reserve’s potential interest rate policy shift is not the only factor influencing Bitcoin’s price, as market sentiment and other external factors can also play a role.
- Investors must remain cautious and consider all factors rather than solely relying on short-term market reactions to news events.
- The potential end of the Federal Reserve’s rate hike cycle does not necessarily guarantee a sustained rally in Bitcoin or other markets.
Why You Should Care
The CPI data print is an essential gauge of inflation and one of the most critical indicators of the economy’s health. In the crypto industry, the print can impact Bitcoin’s price as investors consider it a hedge against inflation.
To learn more about how Bitcoin’s price was performing before the CPI and what was expected of the report, read here:
For more information on the recent surge in Solana’s value and its impact on the crypto market, read here: