Bitcoin Price Pumps 5% to $65K After CPI Data – Can BTC Break Out of Its Current Range?
The Bitcoin (BTC) price surged more than 5% back to the $65,000 level on Wednesday in wake of US CPI inflation data that showed moderating price pressures in April, supporting bets that the Fed will be able to ease interest rates a few times before the end of 2024.
Decent CPI reading –
US CPI (MoM – Apr): 0.3% vs. 0.4% exp. (prior 0.4%) Core (MoM): 0.3% vs. 0.3% exp. (prior 0.4%)
Growth stocks are like coiled springs, QT-taper and rate cuts later this year likely to trigger big rally.
— Puru Saxena (@saxena_puru) May 15, 2024
The rise in the Bitcoin price came alongside a 0.9% jump to new all-time highs for the S&P 500.
Meanwhile, US bond yields and the US Dollar Index slumped to one-month lows.
Traders are currently the most confident that there will be at least one cut by September in around one month.
That’s according to CME data, which shows a 71% money market implied probability of at least one cut by September.
One day ago, the money market implied probability of at least one cut by September was around 65%.
Bitcoin now faces a crucial technical barrier in the form of its 50DMA at $65,166.
If the Bitcoin price can break above here and its May highs around $65,500, further short-term upside could follow.
The next level to watch would be the late-April highs around $67,000.
Beyond that, a retest of yearly highs in the $73,000 area would be the next target.
Fears about a gradual rise in inflation in Q1 2024 has been a major headwind to Bitcoin in recent months.
Sticky inflation at the start of 2024 forced markets to price out aggressive Fed rate cuts.
That’s probably the single biggest reason why Bitcoin stalled after hitting new record highs near $74,000 ahead of the halving.
It has since been locked within a consolidation range,
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