Bitcoin (BTC) surpassed $64,000 on May 15 as US core inflation hit a three-year low. Data showed local highs of $64,700 for BTC/USD after Wall Street opened.

Bitcoin bulls got a boost from the latest print of the United States Consumer Price Index (CPI), which beat expectations in a win for risk assets. Both the S&P 500 and the Nasdaq Composite Index reached new all-time highs. The month-on-month CPI came in at 0.3% in April, 0.1% below expectations, with other figures in line with forecasts.

This dropped core inflation to the lowest level since 2021 – possibly supporting the case for rate cuts.

“This marks the first decline in CPI inflation in 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.

“The Fed remains in wait-and-see mode.” Kobeissi referred to the PPI figures of the previous day. Federal Reserve Chairman Jerome Powell nevertheless maintained a dovish tone during a subsequent speech. “I wouldn’t call it hot, I would call it mixed,” he said when asked about the PPI data, quoted by Reuters.

Market odds for near-term rate cuts nevertheless remained largely unchanged on the day, with just 3.1% betting on a cut in June and 28.3% for July, according to data from CME Group’s FedWatch Tool.

As for Bitcoin, the picture on exchanges’ order books had shifted significantly due to the reaction to the CPI. Data from monitoring source CoinGlass showed price gobbling up liquidity at the upside, with a new block forming above the highs around $65,000.

Popular trader Skew gave in his commentary indicated that spot buyers should keep up the pressure and recapture the 200-period exponential moving average (EMA) as support on 4-hour timeframes, currently at $63,195. “Ideally BTC leads strength from here, $65K should still turn around for market confidence to return imo,” went one further message on X further.

Source: https://cryptobenelux.com/2024/05/15/bitcoin-stijgt-voorbij-64k-na-nieuwe-inflatiecijfers-in-de-vs/



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