Bitcoin Price Hits $69K as U.S. CPI Inflation Falls

Bitcoin

The lower inflation numbers have created optimism about the economic outlook and the potential for a more relaxed stance on interest rates from the Federal Reserve.

The highly anticipated U.S. Consumer Price Index (CPI) data released on Wednesday showed that U.S. inflation stayed at 0.3% in May, higher than the market expected. Investors and analysts were keenly awaiting this inflation data to understand the current state of the economy and predict the possible actions of the U.S. Federal Reserve regarding interest rates.

According to the U.S. Bureau of Labor Statistics, the CPI for May remained at 0.3%, while the market had predicted it would drop to 0.1%. Although there was a slight increase, the overall CPI inflation decreased to 3.3% in May from 3.4% in April. Additionally, the Core CPI, which excludes food and energy prices, dropped to 0.2% in May from 0.3% the previous month. Core CPI inflation also decreased to 3.4% for the year from 3.6% in April. These signs of cooling inflation have led to market optimism.

May CPI Spark Optimism in the Crypto Market

The lower CPI inflation numbers have boosted investor sentiment, leading to a rally in the cryptocurrency market, including Bitcoin. The positive data has led the market to expect a more lenient approach from the Federal Reserve on interest rates. Following the CPI release, Bitcoin’s price increased by over 4% to $69,980 after a slow week, with a low of $66,123.60 in the past 24 hours. Bitcoin Futures Open Interest also grew by 2.29% to 523.38K BTC, worth $36.37 billion, according to CoinGlass.

The altcoin market also saw gains. The price of Ethereum rose nearly 3% today to $3,637.36, while Solana’s price increased by about 4% to $158.43. These gains in the cryptocurrency market reflect the overall positive sentiment among investors due to the cooling inflation figures. The lower inflation numbers have created optimism about the economic outlook and the potential for a more relaxed stance on interest rates from the Federal Reserve. This has, in turn, fueled a rise in the prices of cryptocurrencies as investors seek higher returns.