Bitcoin price rivals 10-month high as CPI data beats expectations

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Bitcoin (BTC) surged ahead of Wall Street’s April 12th open as U.S. inflation data outperformed market expectations.

CPI offers ‘great inflation print’ for risk-on bulls

Cointelegraph Markets Pro and TradingView It followed BTC/USD as it neared a new 10-month high for Bitstamp.

The widely anticipated volatility hit shortly after the March Consumer Price Index (CPI) data was released. This was largely in line with expectations, with year-on-year growth 0.2% below expectations.

“The all-commodity index rose 5.0% in the 12 months to March, the smallest increase in 12 months since the period to May 2021.” press release Confirmed by the U.S. Bureau of Labor Statistics.

Still, this is enough to trigger an optimistic uptick in the cryptocurrency market ahead of Wall Street’s opening, which could lead to further gains in line with the stock going forward.

Market Commentator Tedtalksmacro called The result was “a great inflation print for bulls.”

US CPI

Heading +5.0 YoY (Est. +5.2%)

Core +5.6% YoY (forecast +5.6%)

As expected, the headlines were slightly below expectations.

— tedtalksmacro (@tedtalksmacro) April 12, 2023

However, the CPI, known as the classic catalyst for “fake-out” price action, has prompted caution from market participants.

Popular analytics resource Skew predicted “The market will be looking for liquidity just like any other CPI day,” he said, adding that big moves are likely to trigger liquidations on exchanges.

“The CPI points to slowing inflation across the board, and the CPI Core still points to solid inflation,” he added on Twitter. commented Regarding the future direction of US macroeconomic policy.

“Maybe one more hike. May data needs to see a rate hike shock for the Fed to actually consider pausing the rate hike cycle.”

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Despite the improvement in CPI data, market expectations of rate hikes moved only slightly.

According to CME Group FedWatch Toolsthe chance of a rate hike at the next Federal Open Market Committee (FOMC) meeting in three weeks is 65%, down from 75% before the announcement.

Bitcoin bulls gain confidence in long-term trend

Meanwhile, the latest BTC price move further strengthened long-term bets that Bitcoin has broken out of the bear market.

RELATED: Bitcoin Holds $3 Million, But Some Pro Traders Are Skeptical About BTC Price Continuation

Popular trader and analyst Rekt Capital finds that BTC/USD continues to rise following an impressive daily close from April 11, breaking above key resistance trendlines.

“BTC Shows First Signs Of Successful Retest Of Higher High Resistance To New Support,” His Latest Analysis said.

The views, thoughts and opinions expressed herein are those of the authors only and do not necessarily reflect or represent the views or opinions of Cointelegraph.