Bitcoin (BTC) surpassed $64,000 on May 15 as core inflation in the U.S. hit a three-year low.
Bitcoin advances as CPI surpasses expectations.
The local high for BTC/USD after Wall Street opened was $64,700, according to data from Cointelegraph Markets Pro and TradingView.
Bitcoin bulls gained ground in the latest US Consumer Price Index (CPI) report, which beat expectations for the risk asset. Both the S&P 500 Index and the Nasdaq Composite Index hit record highs.
The previous month’s CPI in April was 0.3%, 0.1% lower than expected, while other readings were also in line with forecasts.
This brought core inflation to its lowest level since 2021, potentially strengthening the prospects for a rate cut.
But not everyone was so optimistic.
“This is the first decline in CPI inflation in the last three months. However, yesterday PPI inflation data showed an increase for the third consecutive month,” said trading resource The Kobeissi Letter. wrote It is part of the X thread.
“The Fed will continue to watch.”
Kobe City mentioned the Producer Price Index (PPI) figures from the previous day. Nonetheless, Federal Reserve Chairman Jerome Powell maintained a dovish tone in his subsequent speech.
“I wouldn’t call it a hot situation, I would call it a mixed situation,” he said when asked about the PPI data cited by Reuters.
Nonetheless, market odds for a short-term rate cut were mostly unchanged on the day, with just 3.1% betting on a rate cut in June and 28.3% in July, according to data from CME Group’s FedWatch Tool.
Focus on reclaiming BTC price support
Switching to Bitcoin changed the picture on exchange order books significantly in terms of CPI response.
Related: Pre-halving All-Time High, Bitcoiner Predicts $95K BTC Price.
Data from monitoring resource CoinGlass shows new blocks forming above highs around $65,000 as liquidity boosts the price.
Popular trader Skew comments on the current situation said Spot buyers needed to keep the pressure going and reclaim the 200-period exponential moving average with four-hourly support currently at $63,195.
“Ideally BTC is going strong from here and needs to continue flipping $65,000 for market confidence to return imo,” reads part of an additional X post. continued.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.