Bitcoin price taps $64.7K as US CPI shows core inflation at 3-year low
Bitcoin (BTC) passed $64,000 on May 15 as United States core inflation hit three-year lows.
Bitcoin advances as CPI beats expectations
Data from Cointelegraph Markets Pro and TradingView showed local highs of $64,700 for BTC/USD after the Wall Street open.
Bitcoin bulls received a boost from the latest United States Consumer Price Index (CPI) print, which beat expectations in a win for risk assets. Both the S&P 500 and Nasdaq Composite Index hit all-time highs.
Month-on-month CPI came in at 0.3% for April, 0.1% below expectations, with other figures conforming to predictions.
In so doing, core inflation fell to its lowest levels since 2021 — potentially bolstering the case for interest rate cuts.
Reacting, however, not everyone was so optimistic.
“This marks the first decrease in CPI inflation over 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 (formerly Twitter).
“The Fed will remain in wait and see mode.”
Kobeissi referred to the previous day’s Producer Price Index (PPI) numbers. Jerome Powell, Chair of the Federal Reserve, nonetheless maintained a dovish tone at a subsequent speaking appearance.
"I wouldn't call it hot, I'd call it mixed," he said when asked about the PPI data, quoted by Reuters.
Market odds for near-term rate cuts nonetheless remained mostly unmoved on the day, with a mere 3.1% betting on a June cut and 28.3% for July, per data from CME Group’s FedWatch Tool.
BTC price support reclaim in focus
Turning to Bitcoin, the picture on exchange order books had shifted considerably on the CPI reaction.
Related: Bitcoiner who called pre-halving all-time high predicts $95K BTC price
Data from monitoring resource CoinGlass showed price eating through liquidity to the upside, with a new block forming above the highs around $65,000.
Commenting on the current landscape, popular trader Skew said that spot buyers needed to keep up the pressure and reclaim the 200-period exponential moving average (EMA) as support on 4-hour timeframes, currently at $63,195.
“Ideally BTC leads strength from here, would need to flip $65K still for market confidence to return imo,” part of a further X post continued.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
