According to CryptoPotato, Bitcoin's price saw a 4% increase, reaching nearly $64,000, as the Consumer Price Index (CPI) met expectations. This rise is believed to be due to the anticipation of the Federal Reserve possibly easing its anti-inflationary measures, which could lead to an increase in investment in riskier assets.
The price of Bitcoin saw a slight increase following the release of the latest CPI data by the US Bureau of Labor Statistics. The cryptocurrency's price spiked to almost $64,000, marking a 4% surge on a 24-hour scale. The total CPI for April 2024 was recorded at 3.4%, which was in line with expectations.
The Federal Reserve has been implementing various anti-inflationary policies over the past few years, such as rate hikes, with the aim of reducing annual inflation to 2%. The most recent CPI data is one of two releases before the next Federal Open Market Committee Meeting, scheduled for June 12.
The central bank of America has hinted at a shift in its aggressive anti-inflationary stance, but a rate cut is not expected until July at the earliest. Lower interest rates could make borrowing money easier, potentially leading to increased interest in riskier assets like Bitcoin. Many industry participants believe that such a move could trigger a Bitcoin rally due to the influx of new capital.