Bitcoin
Bitcoin Jumps Amid Slower-Than-Expected US Inflation – Here’s What That Means for Crypto – DL News
- The consumer price index fell to 0.2% from last month, contrary to expectations.
- Analysts anticipate a more dovish approach from the Fed later today.
Bitcoin jumped after US inflation data signaled that consumer prices are rising more slowly than feared, leaving investors optimistic about the health of the world’s largest economy.
The core consumer price index fell to 0.2% compared to last month, versus a consensus estimate of 0.3%. Compared to last year, inflation fell to 3.4%. Analysts had expected a 3.5% gain.
“This is stellar data, which unequivocally confirms that disinflation is still intact,” said Caleb Franzen, founder of Cubic Analytics, in a note.
Bitcoin has gained 2.3% in the last hour. Futures tracking the S&P 500 rose, while US government bond yields fell.
Federal Reserve Chairman Jerome Powell will speak later today about his outlook for US monetary policy.
Slower-than-expected inflation “could cause Powell to adopt a more dovish tilt,” Markets.com chief analyst Neil Wilson said before the numbers came in at 8:30 a.m. in Washington today.
“They are trying to ease some level of monetary policy tightening, with the ecological data pointing to a slowdown and rising unemployment,” Wilson said. “This tends to suggest a cut in September and another this year.”
A cut in interest rates tends to increase the risk of assets, including stocks and cryptocurrencies.
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Crypto Market Movers
- Bitcoin gained 3.3% in the last 24 hours to $69,334.
- Ethereum rose 2.6% to $3,627.