Bitcoin (BTC) achieved a record high of $66,400 on Wednesday following the release of the Consumer Price Index (CPI) data for April, which indicated a decrease in inflationary pressures.
The US Bureau of Labor Statistics reported that April’s CPI showed a 3.4% increase compared to the previous year, a slight drop from the 3.5% seen in March. Importantly, the core CPI, which excludes volatile food and energy prices, also decreased from 3.8% to 3.6%. These figures were in line with market expectations and reinforced the belief that inflation is being effectively controlled.
This decline in inflationary pressures reduced expectations that the Federal Reserve would maintain a more aggressive monetary policy for an extended period. As a result, market optimism grew, with a 75% probability of an interest rate cut as early as September, according to the CME FedWatch tool.
The positive outlook was not limited to Bitcoin alone. The entire cryptocurrency market experienced a surge, with a 6% increase in its capitalization to approximately $2.5 trillion. Other notable altcoins such as Ethereum (ETH) and Solana (SOL) also followed this upward trend, with ETH surpassing $3,000 (up 4%) and SOL breaking the $150 barrier with an 8% increase. Other altcoins like FTM, SEI, IMX, TAO, and BEAM saw gains of over 15% during the day.
According to a trader’s analysis, the Bitcoin price demonstrated promising behavior after falling below the minimum range. The trader mentioned that if Bitcoin breaks the $65,000 resistance, the next target would be between $68,000 and $69,000, with a second target of $74,000 to $75,000. However, the analyst cautioned that a bearish price action in the previous liquidity zone could invalidate the bullish scenario, emphasizing the importance of closely monitoring the market.
It is important to note that the views and opinions expressed in this article are for informational purposes only and should not be considered financial or investment advice. Investing or trading cryptocurrencies carries a risk of financial loss.