Bitcoin (BTC) Suddenly Reclaims $69K. Here’s Why

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As a seasoned crypto investor with a keen eye on market trends and economics, I’m relieved that Bitcoin (BTC) has managed to bounce back from its dip below $69,000 following the release of the May consumer price index (CPI). The unexpectedly lower-than-expected annual rate of inflation (3.3%) and no month-over-month change in CPI have brought a wave of relief to the markets, as indicated by S&P futures rallying and bond yields dropping.

As a researcher studying the cryptocurrency market, I’ve noticed an intriguing development. The value of Bitcoin (BTC) has successfully surpassed the crucial threshold of $69,000 following the unveiling of the latest May consumer price index (CPI) data.

The unadjusted CPI annual rate in May was lower than expected (3.3% vs. 3.4%). 

Notably, US CPI was flat on the month despite estimates for a gain of 0.1%. 

Inflation concerns were eased as S&P futures surged by 40 points and bond yields declined. The May Consumer Price Index (CPI) remained stable month-over-month with a zero percent increase, falling short of the anticipated rise of 0.1%. The index excluding food and energy also showed a smaller than expected growth of 0.2% instead of the projected 0.3%. According to CNBC’s Bob Pisani.

Based on current market sentiment among swap traders, it is widely anticipated that the Federal Reserve will reduce interest rates by a quarter-point during its November meeting in response to recent inflation figures.

According to U.Today’s report, Bitcoin dipped to $66,000 on Tuesday as a result of Bitcoin ETF withdrawals and economic uncertainties. However, the cryptocurrency’s decline has since been partially reversed following positive inflation figures.

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2024-06-12 15:55