Bitcoin has its best day since March after cooling April inflation data | Wilnesh News

Bitcoin Stocks rose on Wednesday after April’s consumer price index showed inflation slowing from the previous month.

The cryptocurrency’s price recently rose more than 5% to $64,910.57, and was on track for its best day since March 25, according to Coin Metrics. for the first time since March 25.

“The slightly lower-than-expected CPI data modestly increases the likelihood of a rate cut, which remains an important influence on Bitcoin prices,” Oppenheimer analyst Owen Lau told CNBC. “After ETFs and halving, the next major catalyst is Rate cuts. Bitcoin is likely to remain range-bound and trade alongside macro data points until we see a clearer path to rate cuts.”

The U.S. Department of Labor’s Bureau of Labor Statistics reported Wednesday that the consumer price index, a broad measure of the price of goods and services at the cash register, rose 0.3% from March. That was slightly lower than the 0.4% forecast by Dow Jones. Consumer prices still increased by 3.4% compared with the same period last year.

“With core U.S. consumer prices cooling for the first time in six months, we may see a return to investor interest in risky assets like cryptocurrencies, prompting more inflows into Bitcoin spot ETFs, which Spot ETFs have had a particularly quiet week this past week,” said 21Shares analyst Leena ElDeeb.

“While rate cuts are still in doubt, the recovery is likely to be slow,” she added. “Typically, higher interest rates make risk assets like tech stocks and Bitcoin less attractive, as investors can earn substantial returns from safer options like U.S. Treasuries.”

ElDeeb explained that Bitcoin has a unique position as both a risk asset and a risk-off asset, with many investors taking a long-term view on the crypto asset, adding that while Fed policy may trigger Bitcoin volatility in the short term, It won’t fundamentally change Bitcoin’s long-term trajectory.

Bitcoin has been more affected by macro factors recently, with industry catalysts like the launch of Bitcoin exchange-traded funds and the halving in the rearview mirror. Bitcoin also didn’t participate in the resurgence of the two-day meme stock craze earlier this week.

With Wednesday’s gains, Bitcoin has gained 7% for the week, its best week since March 29 and on track to break a six-week slide.

Bitcoin has held between $60,000 and $70,000, minus a few small moves above and below that range, since March, when it rose to a new all-time high and quickly corrected. Investors and analysts have been expecting the cryptocurrency to remain range-bound in the coming months in the absence of strong catalysts.

—CNBC’s Jeff Cox and Nick Wells contributed reporting.