Bitcoin, Ethereum Price Rises As US CPI Inflation Cools To 4.9%
The annual U.S. Consumer Price Index (CPI) inflation for April comes in at 4.9%, lower than the expected 5%, as per data by the US Bureau of Labor Statistics. Moreover, the annual core inflation rate drops to 5.5% in April after rising 5.6% last month. As a result, Bitcoin price has started rising as traders expect the US Federal Reserve will pause and move ahead to cut interest rates.
US Consumer Price Index (CPI) Falls To 4.9%
The CPI inflation rate increased to 4.9% in April, as compared to the market consensus of 5%. It is the lowest since April 2021. The annual inflation in March fell to 5%, indicating a possible Fed pivot in the coming months as inflation cooled. However, the US Fed raised interest rates by another 25 bps and increased risks for banks and the economy. The cooling inflation will the Fed a green signal to cut rates soon as the debt ceiling and banking crisis risks looming.
The energy index decreased by 5.1%, and the food index increased by 7.7%. Compared to the previous month, the CPI rose 0.4%, much higher than 0.1% in March but matching market expectations.
Meanwhile, the core inflation rate also fell to 5.5% in April from 5.6% in the prior month, matching market estimates. The fall in both CPI and core inflation rate led the market to rally higher, with futures linked to US stock market indexes rising almost 1% and the crypto market reverse losses.
Also Read: Binance, Coinbase Impacted As Jane Street, Jump Crypto Exit US Crypto Market
Bitcoin, Ethereum Price Rebounds
BTC price jumps after the annual U.S. CPI inflation rate falls to 4.9%. BTC price is currently trading above $28k, up 2% in the last 24 hours. Meanwhile, ETH price also rises above $1850, up 2% in the last 24 hours.
The broader crypto market has followed suit with major altcoins Cardano, XRP, Solana, Dogecoin prices rising higher.
With the CPI cooling in April, the U.S. Dollar Index (DXY) fell below 101.5o. The continuous fall, especially to 101, confirms a bullish momentum in Bitcoin to $30,000, with other cryptocurrencies including Ethereum to follow suit.
Also Read: Gemini Lists PEPE Meme Coin After Binance, Analyst Predicts Major Price Rally
- Robinhood Lists HYPE As Hyperliquid Flips Aster, Lighter In Perp DEX Volume
- Expert Warns More Crypto Bloodbath Ahead of CPI Data Tomorrow
- US President Promises Deal With China on Everything As ‘Trump Insider’ Begins To Close Bitcoin Shorts- Is A BTC Recovery Ahead?
- Just-In: Changpeng “CZ” Zhao Counters Peter Schiff, Says “Tokenizing Gold Is Not On-Chain Gold”
- $240 Million Hacked Crypto Exchange WazirX Reopens Deposits But Faces Community Backlash
- Ethereum Price Poised for Breakout as Wyckoff Re-Accumulation Meets BlackRock’s $110M Purchase
- BNB Price Forecast: Analysts Eye $1500 Ahead of Fresh Coinbase and Robinhood Listings
- XRP Price Classical Pattern Points to a Rebound as XRPR ETF Hits $100M Milestone
- Chainlink Price Eyes $27 Rebound as Whales Accumulate 54M LINK
- Pi Network Price Wedge Signals a Rebound as Key Upgrades Raise Utility Hopes
- Solana Price Eyes $240 Recovery as Gemini Launches SOL-Reward Credit Card
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
