Bitcoin Surges 3.50% After Cooling US CPI Inflation DataBitcoin ( CRYPTOCAP:BTC ) price surged past $63K after the latest U.S. CPI inflation data showed a 0.3% rise in inflation, in line with market expectations. The Core CPI rose 3.6% on a YoY basis, sparking market concerns. However, investors seem to have shrugged off the inflation concerns, especially after the recent U.S. PPI data showed that inflation has soared more than expected.
The latest U.S. Labor Department data showed that the U.S. Consumer Price Index (CPI) rose by 0.3% in April, lower than market expectations of 0.4%. On an unadjusted basis, the U.S. CPI advanced 3.4% on a year-over-year (YoY) basis, in line with market expectations. Simultaneously, the Core CPI, excluding food and energy prices, rose 0.3% on a monthly basis, in line with Wall Street estimates. On a YoY basis, the Core CPI jumped 3.6%, after soaring 3.8% in the prior month.
Despite the inflationary pressure, investors seem to be lauding the better-than-anticipated figures. The latest U.S. PPI inflation data comes in more than the market was expecting, and Federal Reserve Chair Jerome Powell reiterated the central bank's stance with their rate hike plans. According to the CME FedWatch Tool, there is a 96.9% chance that the central bank will hold on to the current interest rate level at their upcoming June meeting.
Furthermore, following the CPI data, the U.S. 10-year Bond Yield fell 2.07% to $4.354, while the U.S. Dollar Index plunged 0.42% to $104.455. Despite the spike in inflation data, investors are focusing on other areas for now.
The asset is moving with a Relative Strength Index (RSI) of 51.99 which is neither overbought nor oversold.
In conclusion, the Bitcoin ( CRYPTOCAP:BTC ) price has rallied after the latest CPI inflation data, with the one-day trading volume of the flagship crypto also surging 8.77% to $27.82 billion.
