Annual U.S. Consumer Price Index (CPI) inflation. for April reached 4.9% compared to expectations of 5%, according to data by the US Bureau of Labor Statistics. In addition, the annual core inflation rate fell to 5.5% in April after rising 5.6% last month.
Thus, Bitcoin prices have started to rise as traders expect the US Federal Reserve to pause and move forward to cut interest rates.
The CPI inflation rate rose to 4.9% in April, compared to the market consensus of 5%. It was the lowest since April 2021. Annual inflation in March fell to 5%, indicating a possible Fed pivot in the coming months as inflation eases. However, the Fed has raised interest rates by another 25 basis points and increased risks for banks and the economy. Declining inflation will give the Fed a green signal to cut rates soon as the debt ceiling and banking crisis loom at risk.
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 the 0.1% in March but in line with market expectations.
Meanwhile, the core inflation rate also fell to 5.5% in April from 5.6% in the previous month, matching market estimates.
Bitcoin price surges after annual U.S. CPI inflation rate. fell to 4.9%. BTC price is now trading above $28k, up 2% in the last 24 hours. Meanwhile, the price of ETH also rose above $1880, up 1.69% in the last 24 hours.
