US CPI Announced: Bitcoin (BTC) and Gold Prices React – A Deep Dive into Crypto Market Trends

  • Latest data reveals that the U.S. CPI increased by 0.3% in April, falling short of the market expectation of 0.4%. Despite this, the U.S. Core CPI increased by 3.6% annually, causing market concerns. However, with cooling inflation, Bitcoin prices started to rise. Elsewhere, gold prices made an upward move.
  • The U.S. Labor Department’s latest data shows that the U.S. Consumer Price Index (CPI) increased by 0.3% in April, falling short of the market expectation of 0.4%. The CPI had also risen by the same rate in the previous month. On an unadjusted basis, the U.S. CPI, a core figure for understanding inflation levels, increased by 3.4% year-on-year (YoY), in line with market expectations.
  • The Core CPI, which excludes food and energy prices, increased by 0.3% on a monthly basis, in line with Wall Street estimates. On an annual basis, the Core CPI fell to 3.6% after coming in at 3.8% in the previous month. Although inflation is still above the Fed’s target range of 2%, it is negatively affecting the sentiment of global investors. However, investors reacted positively to better-than-expected figures.

Latest U.S. CPI data sparks reactions in Bitcoin and gold prices. Despite inflation concerns, Bitcoin rallies and gold prices continue to rise.

U.S. CPI falls short of expectations, Core CPI raises doubts!

The U.S. Labor Department’s latest data shows that the U.S. Consumer Price Index (CPI) increased by 0.3% in April, falling short of the market expectation of 0.4%. The CPI had also risen by the same rate in the previous month. On an unadjusted basis, the U.S. CPI, a core figure for understanding inflation levels, increased by 3.4% year-on-year (YoY), in line with market expectations.

How will the Fed react to the latest data?

As you follow on CoinOtag, Fed Chairman Jerome Powell said on Tuesday that inflation is still high. Therefore, he implied that the central bank will not change the interest rate for a long time. In particular, inflationary pressure kept investors on the edge and triggered increasing volatility in the market. However, the latest CPI data somewhat relieved investors. In this context, it slightly reduced concerns that the Fed will take a more hawkish step. According to the CME FedWatch Tool, the probability of the Fed maintaining the current interest rate level at the upcoming June meeting is 96.9%.

Bitcoin starts the rally!

Following the latest data, the price of Bitcoin reached the highest level of the last 24 hours at $63,773.87. At the time of writing, BTC was trading at $63,656.35, up 3.48%. The daily trading volume of the leading crypto also increased by 8.77% to $27.82 billion. According to CoinGlass data, the Open Interest (OI) of Bitcoin Futures also increased by 1.75% in the last four hours to 474.38 thousand BTC or $30.25 billion. This reflects that investors are still acting with risk-betting appetite following the cooling inflation data.

Gold prices continue to rise

With consumer prices rising in line with expectations, investors breathed a sigh of relief. Following this, the gold market is gaining momentum again. Gold prices were trading in the positive zone before the report. However, some new buying interest is seen as the initial reaction to the latest inflation data. Spot gold was last seen trading at $2,373.10, up 0.66% on the day.

Conclusion

The latest U.S. CPI data has sparked reactions in Bitcoin and gold prices. Despite inflation concerns, Bitcoin has rallied and gold prices have continued to rise. This shows that investors are still willing to take risks, and are focusing on other areas for the time being.

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Crypto Vira
Crypto Virahttps://coinotag.com/
Alican is a young and dynamic individual at the age of 23, with a deep interest in space exploration, Elon Musk, and following in the footsteps of Atatürk. Alican is an expert in cryptocurrency, price action, and technical analysis. He has a passion for sharing his knowledge and experience through writing and aims to make a positive impact in the world of finance.
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