Bitcoin Hits $64.7K Amid 3-Year Low US Core Inflation
On May 15, Bitcoin surged beyond the $64,000 mark as the core inflation rate in the United States reached its lowest level in three years. The data presented by Markets Pro and TradingView indicated that Bitcoin climbed to local highs of $64,700 against the USD, shortly after the Wall Street market opened.
The latest Consumer Price Index (CPI) report from the United States spurred Bitcoin’s upward momentum, exceeding expectations and marking a positive development for risk assets. As a result, both the S&P 500 and the Nasdaq Composite Index reached unprecedented peaks. The month-on-month CPI for April registered at 0.3%, falling 0.1% short of predictions, aligning other figures with forecasts. This drop in core inflation, its lowest since 2021, might fortify arguments for reducing interest rates.
Despite this seemingly encouraging news, not all responses were optimistic. Some market commentators pointed out mixed economic signals. For example, The Kobeissi Letter, a trading resource, highlighted that this was the first drop in CPI inflation in three months. It also noted that the Producer Price Index (PPI) had shown a third consecutive monthly increase the day before. The overall sentiment suggested that the Federal Reserve would likely maintain a cautious stance.
Federal Reserve Chair Jerome Powell echoed this cautious tone in a subsequent public appearance. When asked about the PPI data, he remarked, “I wouldn’t call it hot, I’d call it mixed,” emphasizing a balanced perspective. Consequently, market expectations for imminent interest rate cuts remained largely unchanged. According to CME Group’s FedWatch Tool, only 3.1% of market participants expected a rate cut in June, and 28.3% anticipated one in July.
The Bitcoin market experienced notable shifts in response to the CPI data. Information from CoinGlass showed that Bitcoin’s price was advancing through liquidity levels, creating a new resistance block around the $65,000 range. This shift indicated a potential reconsolidation in the market dynamics.
Popular trader Skew weighed in on this scenario, emphasizing the importance of market pressure to sustain Bitcoin’s growth. He noted that spot buyers would need to maintain momentum and reclaim the 200-period exponential moving average (EMA) as a support level on 4-hour timeframes. Currently, this critical level stands at $63,195.
Skew further asserted that for market confidence to fully return, Bitcoin still needed to break and hold above the $65,000 mark. His commentary suggests that while the short-term outlook was promising, sustained effort was necessary to solidify these gains.
Bitcoin’s recent price surge dovetails with broader economic indicators pointing towards potential shifts in monetary policy. Mixed signals from other economic data and cautious stances from key market players underline the complexity of the current financial landscape. This interplay of factors will likely continue to influence Bitcoin’s trajectory and the broader market sentiment in the near term.
21 thoughts on “Bitcoin Hits $64.7K Amid 3-Year Low US Core Inflation”
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I’m not buying into this rally. Low core inflation might spark rate cuts, but the overall picture is confusing.
Not feeling the excitement here… Bitcoin over $64K but the economic data is still a mixed bag. Be cautious!
Sure, Bitcoin went up, but with PPI on the rise and Powell’s cautious tone, feels like a bubble ready to pop. 💥
Bitcoin over $64K sounds good until you remember the Fed is still cautious, and the PPI is rising.
This surge feels like a short-term blip… CPI drops but PPI rises? Doesn’t inspire confidence. 🤷♂️
Bitcoin reaching $64,700 is such uplifting news. Lower CPI is definitely a factor here. Fingers crossed for sustained growth!
Bitcoin soaring past $64,000 amid CPI reduction news is great! Let’s hope this upward trend continues.
Bitcoin climbing past $64,000 is such a boost! The low CPI numbers could be leading this charge.
Lower core inflation paving the way for Bitcoin to hit $64,700 is fantastic news. Let’s hope the momentum continues! 🌠
Bitcoin past $64K thanks to lower inflation rates is awesome news. Couldn’t be more thrilled!
It’s hard to celebrate Bitcoin’s surge when the economic data is sending mixed messages. Feeling uneasy about this. 😰
Bitcoins rise is nice but the economic outlook is still muddy. Dont pop the champagne just yet.
Just saw the news about Bitcoin hitting $64,700! The drop in core inflation definitely helped. Hope this trend continues!
Bitcoin hitting $64,700 is a great outcome with the CPI dropping. Looks like the market is reacting positively!
The surge of Bitcoin past $64,000 is such a thrill! The lower CPI sure influenced this positive development.
Another day, another Bitcoin roller coaster. With such mixed data, dont count on this climb lasting long.
With Bitcoin reaching new highs of $64,700, it’s safe to say the lower CPI numbers helped immensely. Keep it coming!
Loving the news about Bitcoin cutting through the $64,000 mark. Could this be the start of something big? 🚀
Great, Bitcoin is up. But with all this contradictory economic data, it feels like a house of cards.
Seeing Bitcoin exceed $64,000 thanks to lower core inflation is a great feeling. More growth on the horizon!
Bitcoin past $64,000 is music to my ears. The impact of the low CPI is clear. Let’s keep riding this wave!