Here’s Why Bitcoin (BTC) Suddenly Surged to $64,000

As an experienced financial analyst, I’ve closely followed the relationship between cryptocurrencies, especially Bitcoin, and economic indicators like inflation rates. Based on my analysis of today’s events, I believe that the latest CPI data release played a significant role in pushing Bitcoin prices above $64,000.


Earlier on this Wednesday, the price of Bitcoin (BTC), the primary cryptocurrency, reached a peak of $64,000.

Following the latest Consumer Price Index (CPI) report from the US Department of Labor, which dropped to a 3.4% annual rise compared to last year, aligns with analyst predictions. Consequently, Bitcoin’s price surged significantly. However, a lower CPI figure might have caused an even more pronounced price hike.

As an analyst, I’ve noticed a shift in sentiment among traders specializing in index swaps. They are increasingly betting on a more aggressive timeline for interest rate reductions following the latest Consumer Price Index (CPI) release. According to current market expectations, the Federal Reserve is projected to make two rate cuts – one in September and another in December.

A looser monetary policy will, of course, positively affect risk assets like Bitcoin. 

The S&P 500 futures have gained 26 points as U.S. stock futures surge in response to the latest inflation figures.

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2024-05-15 16:10