Bitcoin
Bitcoin Rises as Cooler Inflation Revives Rate Cut Hopes
Bitcoin Rises as Cooler Inflation Revives Rate Cut Hopes
Bitcoin and other cryptocurrencies rose on Wednesday after US inflation data came in slightly below expectations, raising hopes that the Federal Reserve could start cutting interest rates later this year.
The world’s largest cryptocurrency soared more than 4% to more than $69,500 just minutes after the inflation report was released.
The Department of Labor reported that the annual inflation rate cooled to 3.3% in May, down from 3.4% in April.
Although still high, the lower-than-expected readings could allow the Fed to eventually ease its aggressive rate hike measures.
Cryptocurrency prices rose based on inflation data, with Bitcoin rising more than $1,900 in a matter of minutes. Ether and other altcoins also posted gains as traders reassessed the macroeconomic situation.
Still, Wednesday’s report may not be enough to convince Fed Chairman Jerome Powell and colleagues to immediately begin cutting rates. At 3.3%, inflation remains well above the historically acceptable target of 2%.
The Fed is scheduled to conclude its final policy meeting later on Wednesday.
Read too: Rate Hikes and the Fed – How Do They Affect Crypto Markets?