US Consumer Price Index Declines to 3.4% in April; Bitcoin Price Soars to $64K
Key Inflation Indicator Surpasses Expectations, Bitcoin Price Surges
In a surprising turn of events, the Consumer Price Index (CPI), the U.S. government’s primary gauge of inflation, rose to 3.4% over the past year in April, indicating sustained economic growth. This figure exceeded market predictions, which had anticipated a decrease to 2.9%.
Simultaneously, Bitcoin experienced a sudden surge in price, reaching $64,000 and marking a 3.57% increase within a 24-hour period.
U.S. CPI Decreases to 3.4%
Consumer prices in the United States rose less than anticipated in April, suggesting a potential slowdown in inflation at the start of the second quarter. This development has raised hopes among financial markets for a possible interest rate cut in September.
Breaking news reveals that the U.S. CPI stands at 3.4%, compared to last month’s 3.5%. Additionally, the core CPI, which excludes food and energy prices, came in at 3.6% compared to the previous month’s 3.8%. Both figures align with expectations and are viewed as positive indicators for Bitcoin.
The Consumer Price Index (CPI) Reports 3.4% Increase
Over the 12-month period ending in April, the Consumer Price Index (CPI) experienced a 3.4% increase, slightly lower than the 3.5% rise observed in March. However, it is worth noting that progress in curbing inflation has stalled, as the annual increase remains significantly higher than pre-pandemic levels (9.1% in June 2022).
The Bureau of Labor Statistics (BLS), a division of the U.S. Department of Labor, reported a 0.3% rise in the consumer price index last month, following increases of 0.4% in both March and February. This recent data suggests a slowdown in price growth, aligning with expectations of gradually easing inflationary pressures in the upcoming months.
Core CPI Reaches 3.6%
Simultaneously, the Core CPI, which excludes food and energy prices, rose by 0.3% on a monthly basis, in line with projections from Wall Street experts. Year-over-year, the Core CPI increased by 3.6%, slightly lower than the 3.8% surge witnessed in the previous month.
Positive Impact on Bitcoin
Following the release of the CPI report, the price of Bitcoin experienced a sudden surge, jumping from $61,800 to nearly $64,000, representing a 3.8% increase. Additionally, Bitcoin’s trading volume rose by 10.9%, reaching $28.8 billion, while its market capitalization climbed to $1.25 trillion.