Bitcoin surges above $66,000 as U.S. core inflation hits a three-year low

Bitcoin surged beyond $64,000 on May 15, coinciding with the revelation of reduced core inflation rates in the United States. This rise followed the release of Consumer Price Index (CPI) data, signaling positivity for risk assets such as cryptocurrencies.

Inflation Trends and Fed Policy: Assessing April's CPI Data

Consumer Price Index Data: The CPI report for April displayed a month-on-month increase of 0.3%, slightly below anticipated figures, indicating a decline in core inflation to its lowest level since 2021.

Mixed Reactions: Responses to the statistics varied. The Kobeissi Letter urged caution, highlighting a rise in the Producer Price Index (PPI) for the third consecutive month, suggesting the Federal Reserve would adopt a 'wait and see' approach.

Federal Reserve's Perspective: Chair Jerome Powell maintained a cautiously optimistic stance, describing recent economic reports as 'mixed', with a low market expectation for immediate rate cuts.

Bitcoin's Momentum Amid Economic Uncertainty

CoinGlass observed substantial activity in Bitcoin exchanges, with prices surging past liquidity barriers and establishing a new resistance level around $65,000, indicating strong market buy-in. Trader Insights: Skew emphasized the necessity of sustained buying pressure for Bitcoin to maintain momentum, suggesting that surpassing the $65,000 threshold could bolster market confidence. Conclusion:

Bitcoin's surge on May 15 correlated closely with recent U.S. economic data, underscoring its sensitivity to global economic indicators and market sentiments. The mixed economic outlook has left the market cautiously awaiting future Federal Reserve actions.

Bitcoin's value surged over $64,000 on May 15 amidst reduced U.S. core inflation rates. When writing the article, the transaction price of Bitcoin has soared to $66,068.