Bitcoin Surges Past $69k Following Positive US CPI Report

By: Eliza Bennet

Bitcoin's price has soared past $69,000 following the release of the latest US Consumer Price Index (CPI) data for May. The CPI showed a slight decline, which exceeded experts' predictions and provided a favorable environment for Bitcoin's value increase.

Available data indicates that the much-anticipated US CPI inflation data was better than several analysts' forecasts. Charlie Bilello, Chief Market Strategist at Creative Planning, highlighted that the US CPI moved down to 3.27% year-on-year in May from 3.36% in April. This marks the lowest core inflation reading since April 2021, with US inflation now consistently above 3% for 38 consecutive months.

In a tweet, Bilello noted that the US inflation rate has significantly reduced from the 9.1% peak of June 2022 to 3.3%. He attributed this decline to lower inflation rates in various sectors, including used cars, gas utilities, apparel, food at home, and electricity.

Bitcoin Rises on Optimistic CPI

The better-than-expected CPI numbers immediately impacted Bitcoin's price, pushing BTC to surge by more than 2% within an hour to as high as $69,377. Mike Alfred, a board member at IREN Energy, argued that this movement demonstrates Bitcoin's sensitivity to macroeconomic conditions, describing it as a 'highly intelligent global macro asset that prices in almost everything in advance.'

With positive CPI data shifting market attention, focus now turns to the US Federal Reserve, which is expected to announce its decision on interest rates. Jesse Cohen, Global Markets Analyst at Investing.com, indicated in a statement that the May CPI inflation report might encourage the Fed to consider rate hikes in the coming months, although multiple inflation prints would be needed before a rate cut decision is made.

For further details on Bitcoin's performance, follow [CoinMarketCap]