The price of Bitcoin increased by 4% to nearly $64,000 after the Consumer Price Index (CPI) data met expectations. Anticipation that the Federal Reserve might ease its anti-inflationary measures has led to speculation of a BTC rally, as lower interest rates could boost investment in riskier assets.
The primary cryptocurrency saw a modest rise following the release of the latest CPI data by the US Bureau of Labor Statistics, climbing to almost $64,000 with a 4% increase over 24 hours.
The April 2024 CPI matched expectations at 3.4%.
The Federal Reserve aims to reduce annual inflation to 2% and has implemented several anti-inflationary policies, including rate hikes, over the past few years.
The latest CPI report is one of two before the next Federal Open Market Committee meeting on June 12. Although the central bank has hinted at easing its aggressive anti-inflationary stance, a rate cut is not anticipated until at least July.
Lower interest rates can make borrowing money easier, potentially increasing interest in riskier assets like Bitcoin. Many industry experts believe this could trigger a BTC rally due to the influx of new capital.
