Bitcoin rises alongside stocks after inflation eases in April

Quick Take

  • Bitcoin rallied alongside stocks following cooler U.S. inflation data for April.
  • The largest digital asset by market cap increased 3% in the past 24 hours.

Bitcoin rallied on Wednesday, along with major equities, after cooler U.S. Consumer Price Index (CPI) data for April.

The April CPI, which was released Wednesday morning by the U.S. Bureau of Labor Statistics, indicated a year-over-year gain of 3.4%, slightly lower than March's 3.5% increase.

The bitcoin price increased 3% in the past 24 hours and was changing hands for $63,751 at 9:20 a.m. ET, according to The Block's Price Page.

Stock futures climbed after the latest CPI report indicated an easing of inflation that was in line with economists' expectations. The Nasdaq Composite rose by 0.81%, while the NYSE Composite increased by 0.48% in pre-market trading.

U.S. CPI release

Broader markets are processing the latest U.S. CPI report, which suggests inflation eased in April. This development could bolster the Fed's willingness to commence rate cuts. The report comes after a series of higher-than-expected inflation readings, which had led traders to decrease their bets on when rate cuts might happen this year.

According to the CME's FedWatch tool, interest rate traders are betting that the Fed will hold rates steady in June before making its first possible cut in September. The FedWatch forecast puts the chances of rates remaining steady in June at 91.6%, and in July at 65.1%. However, interest rate traders give the chances of a rate cut in September at 51.4%.

The GM 30 Index, representing a selection of the top 30 cryptocurrencies, has increased by 1.92% to 130.16 in the past 24 hours.

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