News
Here’s why Bitcoin (BTC) suddenly rose to $64,000
Alex Dovbnja
Bitcoin (BTC) price rose above the $64,000 level for the first time since May 6
Continue reading U.TODAY
Google News
The price of Bitcoin (BTC), the main cryptocurrency, surmounted the $64,000 level early this Wednesday.
This came after the most recent Consumer Price Index (CPI), released today by the US Department of Labor, fell to 3.4% year over year. This is in line with analysts’ expectations, which explains why the price of the largest cryptocurrency has seen a substantial increase. That said, a lower CPI reading would likely have triggered a more powerful price rally.
Rent and gas are currently the main drivers of inflation, contributing more than 70% to April inflation.
Index swap traders are now moving towards a faster pace of rate cuts following the latest consumer price index data. The Federal Reserve is expected to reduce borrowing costs in September and December.
Looser monetary policy will, of course, have a positive effect on risky assets like Bitcoin. Last month, as reported by U.Today, the largest cryptocurrency recorded a sharp decline after US inflation turned out to be higher than expected. Bitcoin prices have started to fall amid growing fears of stagflation, with JPMorgan chief Jamie Dimon saying the state of the US economy reminded him of the 1970s.
However, Fed Chair Jerome Powell was quick to do so stop these fears of stagflation, which have instilled some confidence in the markets.
U.S. stock futures also jumped following the inflation data, with S&P 500 futures adding 26 points.
About the author
Alex Dovbnja
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience covering everything related to the burgeoning industry, from price analysis to Blockchain disruption. Alex has authored more than 1,000 stories for U.Today, CryptoComes, and other fintech media. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets; he can be contacted at alex.dovbnya@u.today.