Bitcoin (BTC) surpassed $64,000 on May 15 as core inflation in the United States reached its lowest levels in three years. BTC/USD reached local highs of $64,700 after the Wall Street market opened. The positive performance of Bitcoin was driven by the better-than-expected United States Consumer Price Index (CPI) print, which was a win for risk assets. Both the S&P 500 and Nasdaq Composite Index reached all-time highs. The month-on-month CPI for April came in at 0.3%, slightly below expectations, while other figures aligned with predictions. As a result, core inflation fell to its lowest levels since 2021, potentially paving the way for interest rate cuts. However, not everyone shared the same optimism. Some pointed out that the Producer Price Index (PPI) numbers from the previous day showed a third consecutive monthly increase in inflation. Despite this, Jerome Powell, the head of the Federal Reserve, maintained a dovish tone when discussing the PPI data. Market odds for near-term rate cuts remained relatively unchanged, with only 3.1% betting on a cut in June and 28.3% for July, according to data from CME Group’s FedWatch Tool. Turning to Bitcoin, the reaction to the CPI data significantly impacted the order books on exchanges. Price action showed liquidity being consumed to the upside, with a new block forming above the $65,000 level. Traders noted that spot buyers needed to maintain pressure and reclaim the 200-period exponential moving average as support on four-hour timeframes, currently at $63,195. Overall, this article does not provide investment advice or recommendations, and readers are advised to conduct their own research before making any decisions.
US CPI data reveals 3-year low in core inflation as Bitcoin price reaches $64.7K