Bitcoin price taps $64.7K as US CPI shows core inflation at 3-year low


Bitcoin (BTC) passed $64,000 on May 15 as United States core inflation hit three-year lows.

BTC/USD 1-hour chart. Source: TradingView

Bitcoin advances 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 received a boost from the latest United States Consumer Price Index (CPI) print, which beat expectations in a win for risk assets. Both the S&P 500 and Nasdaq Composite Index hit all-time highs.

Month-on-month CPI came in at 0.3% for April, 0.1% below expectations, with other figures conforming to predictions.

U.S. CPI chart. Source: UBureau of Labor Statistics

In so doing, core inflation fell to its lowest levels since 2021 — potentially bolstering the case for interest rate cuts.

Source: Tedtalksmacro

Reacting, however, not everyone was so optimistic.

“This marks the first decrease in CPI inflation over the last 3 months. However, PPI inflation data yesterday showed a third straight monthly increase,” trading resource The Kobeissi Letter wrote in part of a thread on X (formerly Twitter).

“The Fed will remain in wait and see mode.”

Kobeissi referred to the previous day’s Producer Price Index (PPI) numbers. Jerome Powell, Chair of the Federal Reserve, nonetheless maintained a dovish tone at a subsequent speaking appearance.

“I wouldn’t call it hot, I’d call it mixed,” he said when asked about the PPI data, quoted by Reuters.

Market odds for near-term rate cuts nonetheless remained mostly unmoved on the day, with a mere 3.1% betting on a June cut and 28.3% for July, per data from CME Group’s FedWatch Tool.

Fed target rate probabilities for July FOMC meeting. Source: CME Group

BTC price support reclaim in focus

Turning to Bitcoin, the picture on exchange order books had shifted considerably on the CPI reaction.

Related: Bitcoiner who called pre-halving all-time high predicts $95K BTC price

Data from monitoring resource CoinGlass showed price eating through liquidity to the upside, with a new block forming above the highs around $65,000.

BTC liquidation heatmap (screenshot). Source: CoinGlass

Commenting on the current landscape, popular trader Skew said that spot buyers needed to keep up the pressure and reclaim the 200-period exponential moving average (EMA) as support on 4-hour timeframes, currently at $63,195.

“Ideally BTC leads strength from here, would need to flip $65K still for market confidence to return imo,” part of a further X post continued.

BTC/USD 4-hour chart with 200EMA. Source: TradingView

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.





Also Read More: World News | Entertainment News | Celeb News

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Solana memecoin hits a whopping $328T market cap — but for all the wrong reasons

With just over 1,000 holders, an obscure Solana-based memecoin has apparently become…

Ethereum boosts 8% amid ‘ultra-strong’ social and market activity

Ether (ETH) accelerated 8% in spot crypto markets on Monday amid an…

Genesis Global secures court approval for $3B payout

Bankrupt cryptocurrency lender Genesis Global has secured court approval to return about…

New crypto users shouldn’t ‘rush into DeFi’ — Security firms

While the prevalence of hacks within the crypto space might deter new…