Bitcoin price surges in response to slowing US inflation
According to CNBC: The price of Bitcoin (BTC) rose in response to signs of declining inflation in the United States. The cryptocurrency's price rose more than 5% to $64,910.57, marking its best performance since March 25, according to data from Coin Metrics. Oppenheimer analyst Owen Lau highlighted that a lower-than-expected Consumer Price Index (CPI) figure increases the likelihood of a rate cut, a crucial factor influencing the price of Bitcoin.
The U.S. Department of Labor's Bureau of Labor Statistics revealed that the consumer price index, a broad indicator of goods and services, rose 0.3% since March, slightly below the Dow Jones estimate of 0. 4%. Despite being 3.4% higher than a year ago, consumer prices have begun to show signs of slowing.
While the possibility of rate cuts remains uncertain, it could spark renewed investor appetite for riskier assets such as cryptocurrencies. This, in turn, could spur greater flows into Bitcoin spot exchange-traded funds (ETFs).
