Bitcoin’s upward trend resumes after favorable US CPI data

Along with previous trends, the crypto market reacted positively to the lower inflation numbers in the US CPI data, with Bitcoin’s upward trend leading to the intraday rally.

The US CPI data revealed inflation had cooled down recently, leading to speculations of a rate cut this year. At the same time, the frenzy led to a price jump in the crypto market. Moreover, the leader among the gainers was Bitcoin. Traders took a bullish cue from Bitcoin’s upward trend, and several altcoins also saw gains since May 15.

The Bureau of Labor Statistics in the US said in a statement, “The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3 percent in April on a seasonally adjusted basis, after rising 0.4 percent in March.”

Meanwhile, if this lowering trend of inflation continues, a rate cut could indeed be due towards the end of 2024. Equity markets in the US also soared with the possibility of the event.

In the case of Bitcoin, the gap between its price range and the 20-day moving average has increased after some time and is a hint towards a likely price rally. But for it to happen, bulls have to maintain their momentum and fight bears at resistance levels. Among other tokens, ETH crossed $3,000 with a market cap of $362 billion.

 BTC/USD 1D price chart

Bitcoin is currently trading at around $66,000 on May 16, 2024, with BTC/USD trading higher by a margin of 6.88% in the last 24 hours. Bitcoin’s market cap was trading at around $ 1.29 trillion in the last 24 hours.

BTC/USD is trading higher than its 20-day EMA (62,969.02), as BTC’s 24-hour volume was at around $41.4 billion. The global crypto market cap increased by around 5.94%, trading above $2.39 trillion. BTC’s year-to-date returns are at 57.52%.

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