💥💥💥 #bitcoin Hits $66K as Soft Inflation Data Sparks #CryptoRally
$BTC reached its highest price since April 24, with Solana's $SOL and $NEAR leading the crypto gains.
According to Swissblock, Bitcoin could aim for the $84,000 level, with altcoins showing strong performance.
The crypto markets experienced a rally on Wednesday, spurred by softer-than-expected U.S. inflation data that shook digital assets from their stagnation.
Bitcoin (BTC) surged past $66,000 for the first time since April 24, recording a more than 7% increase over the past 24 hours.
#Ether (ETH) hovered near $3,000 but saw a slightly lower performance with a 4% gain during the same period.
Solana (SOL) and NEAR led the gains among major cryptocurrencies, with increases of 8% and 12%, respectively, while the broader market benchmark CoinDesk 20 Index (CD20) rose by 6%.
The market upswing coincided with the release of April's U.S. Consumer Price Index (CPI) figures, which showed a slight decrease from March, along with a modest retail sales report.
This data brought relief to investors concerned about the possibility of accelerating inflation and its impact on the economy, potentially leading the Federal Reserve to reconsider its dovish stance and consider interest rate hikes.
Bitfinex analysts noted that investors viewed the decline in CPI inflation as a positive development, particularly as it marked the first decrease in three months. Coupled with the Federal Reserve's intention to taper its balance sheet run-off, this was interpreted as favorable for risk assets.
In traditional markets, U.S. equities also saw gains, with the S&P 500 index rising by more than 1% and reaching a new all-time high, indicating a resurgence in risk appetite.
Swissblock analysts observe Bitcoin's breakout from a recent downtrend, suggesting a rally to $69,000 and possibly reaching new all-time highs at $84,000. They anticipate altcoins to also perform well during this upward movement.
Source - coindesk.com
