Bitcoin bulls are back in charge! The leading cryptocurrency surged to a local high of $64,700 after the release of the latest US Consumer Price Index (CPI) data.
Inflation Fears Soothe, Bitcoin Bulls Rejoice
Markets exploded with optimism following the CPI report, which came in lower than expected. Both Bitcoin and major stock indices like the S&P 500 and Nasdaq hit all-time highs as inflation fears seemingly receded. This positive sentiment trickled down to Bitcoin, which had been struggling in recent weeks.
Cooling Inflation May Lead to Rate Cuts?
The lower inflation numbers suggest a potential shift in the Federal Reserve's stance. The core inflation reading reached its lowest point since 2021, potentially paving the way for interest rate cuts in the future. While Jerome Powell, the Fed Chair, remained cautious, his dovish tone suggests the central bank might be open to a more relaxed monetary policy.
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Bitcoin Eyes Reclaim of Key Support
Following the CPI news, Bitcoin order books saw a dramatic shift. The price chewed through resistance and formed a new block above the $65,000 mark. Analysts like Skew emphasize the importance of sustained buying pressure to reclaim the 200-period exponential moving average as support on shorter timeframes. A clean break above $65,000 would be a significant confidence boost for the market.
Conclusion: A Brighter Outlook for Bitcoin?
The positive reaction to the CPI data suggests a potential turning point for Bitcoin. With inflation worries easing and the possibility of rate cuts looming, the future might be looking brighter for the cryptocurrency.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial professional before making any investment decisions.
Source: CoinTelegraph
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