LIVE👉Why Did Bitcoin (BTC) Surge Today? What’s Next? Analysts Weigh In👀
👉Bitcoin saw its biggest rally since March following the release of April's consumer price index (CPI), which revealed a drop in U.S. inflation rates. ⚠️This spike in BTC's price mirrored gains in the U.S. stock market.🏄
👉The CPI, which measures the cost of goods and services, rose by 0.3% from March, slightly below the expected 0.4% increase according to the U.S. Department of Labor. Annually, consumer prices are up by 3.4%.💰
👉Oppenheimer analyst Owen Lau suggests that the lower-than-expected CPI increases the chances of an interest rate cut, a significant factor that could drive Bitcoin prices higher.
👉“After ETFs and the halving, the next big catalyst is a rate cut. Until a clear path for rate cuts emerges, Bitcoin is likely to track macroeconomic trends,” Lau explained.
👉Analysts believe the decline in core CPI for the first time in six months could boost investor interest in riskier assets like cryptocurrencies. Leena ElDeeb from 21Shares noted this might lead to a rise in Bitcoin spot ETFs, which saw little activity last week.
👉However, ElDeeb cautioned that recovery might be gradual due to uncertainty around interest rate cuts. “Higher interest rates generally make assets like tech stocks and Bitcoin less appealing as safer investments like U.S. bonds offer better returns,” she said.
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