Bitcoin price rises to $64.7K as US CPI hits 3-year low
Bitcoin (BTC) surpassed $64,000 on May 15 as US core inflation hit a three-year low.
Bitcoin growth 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 got a boost from the latest US Consumer Price Index (CPI) publication, which beat expectations for a win for risk assets. Both the S&P 500 and the Nasdaq Composite Index hit all-time highs.
Month-on-month CPI for April came in at 0.3%, below expectations of 0.1%, while other figures were in line with forecasts.
With that, core inflation has fallen to its lowest level since 2021 – potentially strengthening the case for interest rate cuts.
Responding But not everyone was so optimistic.
“This marks the first decline in CPI inflation in the last 3 months. However, PPI inflation data yesterday showed a third straight monthly increase,” marketing resource Kobeisi wrote in part in a thread on X.
“The Fed remains in a wait and see mode.”
Kobeisi cited the previous day's producer price index (PPI) numbers. Federal Reserve chairman Jerome Powell had a good voice during his next speech.
“I wouldn't call it warm, I'd call it mixed,” he said when asked about PPI data, according to Reuters.
Market odds on a recent cut, however, were largely unchanged on the day, with bets on a July cut at 3.1% and July at 28.3%, according to data from CME Group's FedWatch Tool.
BTC price recovery in focus
Turning to Bitcoin, the picture on exchange order books has changed significantly in response to CPI.
Related: Bitcoiner Predicts $95K BTC Price Called Pre-Half All-Time High
Data from monitoring sources showed CoinGlass eating up the price with liquidity to the upside, with a new block formed above the highs of $65,000.
Commenting on the current landscape, popular trader Skew said spot buyers should continue the push and find the 200-time exponential moving average as support on the four-hour timeframe, currently at $63,195.
“At best BTC strength will lead from here, still need to flip $65K for market confidence to restore imo,” continued a section of the Extra X post.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
