As an experienced financial analyst, I have closely monitored the Bitcoin market and the U.S. inflation data in recent weeks. The latest U.S. Consumer Price Index (CPI) release has brought some relief to investors, as the headline figure came in lower than expected, with a monthly increase of 0.3%. However, the core CPI, which is a more accurate indicator of underlying inflationary pressure, soared by 3.6% on a year-over-year (YoY) basis.
As an analyst, I’ve observed that the Bitcoin price has held steady in the face of investor reassurance following the latest U.S. Consumer Price Index (CPI) report. Previously, there were concerns about inflation, but these fears have been largely dismissed after the CPI data was released. Market participants had been on edge, anticipating the CPI numbers with heightened interest due to the unexpected surge in U.S. Producer Price Index (PPI) data earlier.
Currently, inflation concerns have affected investor attitudes, as they worry about the possibility of the Federal Reserve adopting a more aggressive monetary policy.
U.S. Core CPI Soars 3.6%
The latest data from the US Labor Department reveals that the Consumer Price Index (CPI) in the United States increased by 0.3% in April, which was below the anticipated rise of 0.4%. It’s worth mentioning that there was no change in the CPI rate compared to the previous month. Regarding the key indicator for inflation, the unadjusted year-over-year (YoY) increase in the US CPI remained steady at 3.4%.
At the same time, the Core Consumer Price Index, which excludes food and energy costs, increased by 0.3% on a monthly basis, matching analysts’ expectations. On an annual basis, the Core CPI climbed by 3.6%, following a 3.8% rise in the previous month.
Significantly, despite inflation appearing to ease, it remains above the Federal Reserve’s desired 2% threshold, casting a shadow over international investor confidence. Moreover, this situation raises worries about the potential for more aggressive monetary policy actions from the central bank regarding interest rates.
The recently released U.S. Producer Price Index (PPI) data showing higher-than-anticipated inflation has been met with surprise in the market. Subsequently, Federal Reserve Chairman Jerome Powell affirmed the Fed’s commitment to raising interest rates as planned.
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2024-05-15 15:41