Core

Bitcoin

April

Spurred by better-than-expected U.S. Consumer Price Index (CPI) data, Bitcoin saw a 1.6% increase in the 13:30 (BST) 30-minute candle to close at $28,197.
The move was accompanied by high volume to break a four-day slide for the leading cryptocurrency.
<figure id="attachment_324081" aria-describedby="caption-attachment-324081" style="width: 1024px" class="wp-caption aligncenter"><img class="wp-image-324081 size-large" src="https://cryptoslate.com/wp-content/uploads/2023/05/BTCUSD_2023-05-10_14-09-46-1024x465.png" alt="Bitcoin 30 minute chart" width="1024" height="465" srcset="https://cryptoslate.com/wp-content/uploads/2023/05/BTCUSD_2023-05-10_14-09-46-1024x465.png 1024w, https://cryptoslate.com/wp-content/uploads/2023/05/BTCUSD_2023-05-10_14-09-46-300x136.png 300w, https://cryptoslate.com/wp-content/uploads/2023/05/BTCUSD_2023-05-10_14-09-46-768x349.png 768w, https://cryptoslate.com/wp-content/uploads/2023/05/BTCUSD_2023-05-10_14-09-46.png 1280w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-324081" class="wp-caption-text">Source: <a href="https://www.tradingview.com/">BTCUSD on TradingView.com</a></figcaption></figure>
<h2 id="wider-macro-factors-weigh-heavy-with-bitcoin-uncertainty">Wider macro factors weigh heavy with Bitcoin uncertainty</h2>
Since breaking below $30,000 on April 17, BTC found support at $27,000 on April 24.
It has since been ranging between $27,280 and $30,050 &#8211; with both limits showing strong support and resistance, as signified by multiple touches at the respective bands.
Having been rejected at $29,940 resistance on May 6, BTC closed consecutive red daily candles over a four-day period &#8211; losing 8% during this time frame.
The current macroeconomic narrative is focused on the $31 trillion debt ceiling and whether the U.S. will default if a bipartisan agreement cannot be thrashed out.
Treasury Secretary <a href="https://www.telegraph.co.uk/business/2023/05/09/us-debt-ceiling-what-means-economy-biden/">Janet Yellen</a> warned that the administration will run out of money by June 1, if a deal cannot be struck.
Meanwhile, the Fed&#8217;s rate hike program looks to be having the desired effect, at least against month-over-month expectations.
On May 3, the central bank raised rates by <a href="https://www.forbes.com/advisor/investing/fed-funds-rate-history/">25 basis points</a>, bringing the Federal Funds Rate to 5.00% &#8211; 5.25%. The next FOMC meeting will conclude on <a href="https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm">June 14</a>, with markets currently <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html?redirect=/trading/interest-rates/countdown-to-fomc.html">87%</a> in favor of no hike &#8211; likely in acknowledgment of ongoing banking weaknesses witnessed in recent weeks.
<h2 id="cpi-data">CPI data</h2>
CPI rose 4.9% in April, coming in less than the expected 5% rate.
Nonetheless, Core CPI grew <a href="https://www.forexlive.com/news/us-april-cpi-49-yy-versus-50-expected-20230510/">0.4%</a> in April versus expectations of a 0.4% increase. This brings year-over-year Core CPI to 5.5% &#8211; unchanged compared to April last year.
Like CPI, Core CPI also tracks the price of goods and services but differs by way of excluding food and energy prices &#8211; which are said to be too volatile to include. Central banks use Core CPI, not CPI, to inform policy.
Meanwhile, throughout this period of uncertainty, Bitcoin has held firm &#8211; even showing fleeting signs of safe haven qualities during the banking crisis.
For now, it&#8217;s all eyes on June 14 as the market awaits the Fed&#8217;s assessment &#8211; with many holding out for a pause, which could lead to a pivot.
The post <a rel="nofollow" href="https://cryptoslate.com/bitcoin-halts-four-day-slide-as-cpi-comes-in-better-than-expected/">Bitcoin halts four day slide as CPI comes in better than expected</a> appeared first on <a rel="nofollow" href="https://cryptoslate.com">CryptoSlate</a>.

Bitcoin halts four day slide as CPI comes in better than expected

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