Bitcoin Price Prediction as US Core Inflation Data is Released – Is the Bull Market About to Start?
Bitcoin’s price surged by 7.50% to $66,350 amid the latest U.S. inflation data release. The U.S. consumer price index (CPI) rose by 0.3% in April, down from 0.4% in March and February.
This lower-than-expected increase suggests inflation is resuming its downward trend, bolstering financial market expectations for a potential interest rate cut by the Federal Reserve in September.
The CPI data is significant as it indicates cooling inflation, which is a positive signal for the economy. The slower increase in consumer prices aligns with other data showing retail sales were flat in April, further suggesting a slowdown in domestic demand.
This cooling demand is welcome news for Federal Reserve officials aiming to achieve a “soft landing” for the economy without triggering a recession.
Shelter costs, including rents, increased by 0.4% for the third consecutive month, and gasoline prices jumped by 2.8%. These two categories accounted for over 70% of the CPI increase. In contrast, food prices remained unchanged, with notable decreases in supermarket prices for items like eggs, which dropped by 7.3%.
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