Bitcoin Price Soars As US CPI Data Shows Inflation Eased In May 2023
Crypto Market News: The Bureau of Labor Statistics had on Tuesday released the US Consumer Price Index (CPI) data for the month of May 2023. The department said that in May, the Consumer Price Index for all urban consumers increased 0.1%, seasonally adjusted, and rose 4% over the last 12 months, not seasonally adjusted. Hence, the inflation data for the month came in as expected, while the 4% annual inflation rate is the lowest in about two years.
The market participants had expected the CPI data to show signs of easing inflation, with prices expected to have risen 0.1%, compared to the 0.4% rise in April 2023. On the other hand, the market participants are anticipating a rate hike pause decision from the June 14, 2023 Federal Open Market Committee (FOMC) meeting.
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Bitcoin Price Rises Over News Of Cooling Inflation
The CPI Index, also called inflation numbers, measures the average change over time in the costs paid by urban consumers for goods and services. In the lead up to the CPI data release, the Bitcoin price saw a jump over the last 24 hours, leading it to the $26,000 range. After the data release, the BTC price registered a 3% jump compared to the daily low of $25,700 level, followed by some correction.
Meanwhile, the news of easing inflation and the lowest annual inflation rate recorded in two years could mean additional confidence for the US Federal Reserve officials in deciding to initiate yet another rate hike pause. The CME FedWatch Tool, which gauges the likelihood that the Fed will change the Federal target rate, currently shows a 100% probability of a rate hike pause in the upcoming meeting.
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