Alex Dovbnya
Bitcoin soared higher due to lower-than-expected inflation readings in the U.S.
The price of Bitcoin (BTC) has managed to reclaim the pivotal $69,000 level after the release of the May consumer price index (CPI).
The unadjusted CPI annual rate in May was lower than expected (3.3% vs. 3.4%).
Notably, US CPI was flat on the month despite estimates for a gain of 0.1%.
“Big relief for inflation watchers. S&P futures rally 40 points, bond yields drop as May CPI comes in unchanged month-over-month, below expectations of up 0.1%; ex-food & energy up 0.2%, also below expectations of up 0.3%,” CNBC’s Bob Pisani said.
Swaps traders now overwhelmingly expect the Federal Reserve to opt for a quarter-point rate cut in November following the recent inflation data.
As reported by U.Today, the flagship cryptocurrency slipped to the $66,000 level on Tuesday due to the double-whammy of Bitcoin exchange-traded fund (ETF) outflows and macroeconomic uncertainty. However, the leading cryptocurrency has now pared its recent losses due to the encouraging inflation data.
Bitcoin has surged in tandem with US stocks. S&P 500 futures are up more than 50 points after the CPI report.
Meanwhile, the 10-year Treasury yield has dropped to 4.273%, the lowest level since Apr. 1.
