US CPI lower than expected effect?...Bitcoin, re-breaking $73,000 imminent

▲ Bitcoin (BTC), US Dollar (USD)/AI-generated image

Immediately after the announcement that the US Consumer Price Index (CPI) came in lower than market expectations, Bitcoin (BTC) price surged, breaking the $72,000 mark.

According to BeInCrypto on April 10 (local time), the US Bureau of Labor Statistics announced that the March CPI increased by 3.3% year-over-year. This figure is lower than the 3.4% expected by Wall Street experts. The core CPI, which excludes volatile food and energy, also rose by 2.6% year-over-year, lower than the market's expectation of 2.7%. As signs of slowing inflation were detected, Bitcoin soared above $72,300 within minutes of the data release, demonstrating strong buying momentum.

This CPI report garnered attention from global financial markets as it was the first inflation indicator released since the conflict between the US and Israel escalated to Iran. According to the report, gasoline prices surged by 21.2% month-over-month, marking the largest monthly increase since 1967. The overall energy index also rose by 10.9%, accounting for about three-quarters of the total price increase. Despite this explosive rise in energy prices, the overall CPI was managed lower than expected, leading the market to interpret it as a sign of easing inflationary pressure.

The cryptocurrency market is interpreting this inflation data as a favorable environment for risk assets. Bitcoin is attempting to reclaim the $73,000 mark after breaking $72,300, and major altcoins, including Ethereum (ETH), also showed a concurrent upward trend. In particular, this rally, which occurred after Bitcoin successfully converted the psychological resistance level of $70,000 into support, is considered a strong stepping stone for setting new all-time highs in the future.

A cautious atmosphere still surrounds the direction of the US Federal Reserve's (Fed) interest rate policy. The key remains whether the downward stabilization of core inflation will continue amidst persistent energy price volatility. Investors are closely monitoring changes in market liquidity, hoping that this inflation data will provide grounds for the Fed to accelerate its interest rate cuts. The total market capitalization of virtual assets has entered a phase where trillions of dollars in capital inflow are expected following the release of this data.

Bitcoin is currently trading around $72,300, maintaining solid upward momentum. With some macroeconomic uncertainties resolved, the market is focusing on the possibility of a full-scale supply shock coinciding with Bitcoin's halving. Coupled with institutional investors' buying of spot ETFs, Bitcoin's price determination power is gradually shifting into the hands of the bulls.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*