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Bitcoin prices rose after US data showed inflation was stronger than expected in April. Consumer prices in April rose 3.4% compared to the same period last year. This is a marked slowdown in the rate of inflation compared to March's 3.7%, according to the U.S. Bureau of Labor Statistics.
According to data from CoinGecko, Bitcoin price is now $63,142, shortly after the BLS released new Consumer Price Index data. This is an increase of 3% in the past 24 hours and an increase of 1.4% from an hour ago.
And the price of Ethereum, the second-largest digital asset by market capitalization, is currently $2,944.94, up 1.8% from this time yesterday and 2% from an hour ago.
The CPI report measures price changes for a basket of common consumer goods and services and is used to estimate changes in the economy's inflation rate. In a report today that includes consumer price data for April, the BLS reported that home prices and gasoline prices are the two biggest drivers of price increases.
“Together, these two indexes contributed more than 70% of the monthly increase in the index for all items,” the BLS said in a summary.
Economists originally expected the Fed to cut rates early this year, but many now believe a rate cut will occur by September. Reuters This week's research revealed this.
U.S. stocks, especially tech stocks, rose, and the Nasdaq-100 Technology Sector Index (NDXT) also rose.
It gained 72 points and was trading 0.72% higher than this time yesterday. Meanwhile, the S&P 500 rose 0.48%, leading the way in the US market.
Bitcoin hit a new high of nearly $74,000 per coin in March. That surge was fueled by the approval of the Spot Bitcoin exchange-traded fund (ETF) in January, which caused an influx of money into the market.
But asset management has stagnated as the Fed is in no hurry to lower historically high interest rates as data shows inflation is not going away. When interest rates are high, investors tend to become “risk averse” and avoid assets like Bitcoin.
As a result, the virtual coin has been trading well below its 2021 record of $69,044 both this month and last time.
experts have said before Decryption This means that even if interest rates fall, the price of Bitcoin will remain stable.
Edited by Stacey Elliott.
