Get latest insights into Bitcoin price movements and predictions in the wake of the most recent US annual inflation report.
The world’s biggest crypto coin jumped more than 1.5% from $27,690 and added over $10 billion to its market worth in just a few minutes as crypto investors welcomed the fact that inflationary pressures continued to ease last month, driving expectations of the Federal Reserve’s pause in its policy tightening campaign.
BTC 1-day price chart. Source: Finbold
According to the Bureau of Labor Statistics (BLS), annual inflation fell to 4.9% in April, compared to economists’ expectations of 5%. Month-on-month, inflation climbed 0.4%, higher than the 0.1% increase recorded in March.
Core inflation, which disregards food and energy costs, rose 5.5% year-over-year, in line with the estimates.
Potential Fed pivot
The next Fed policy meeting is in June, which means there will be another CPI inflation report next month before the Fed announces its next rate move. However, many believe this might be the last rate increase for a while, particularly after today’s CPI data.
Bitcoin price prediction
– Altcoin Sherpa wrote in the tweet.“I dont think that this goes past 29k in the short term; lots of resistance coming. 4h EMAs all clustered + lots of S/R levels incoming, this is still a v. choppy environment IMO.”
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