The annual U.S. Consumer Price Index (CPI) inflation for April comes in at 4.9% against the expected 5%, as per data by the US Bureau of Labor Statistics. Moreover, the annual core inflation rate drops to 5.5% in April after rising 5.6% last month. As a result, Bitcoin price has started rising as traders expect the US Federal Reserve will pause and move ahead to cut interest rates.
US Consumer Price Index (CPI) Falls To 4.9%
The CPI inflation rate increased to 4.9% in April, as compared to the market consensus of 5%. It is the lowest since April 2021. The annual inflation in March fell to 5%, indicating a possible Fed pivot in the coming months as inflation cooled. While, the US Fed raised interest rates by another 25 bps and increased risks for banks and the economy, the Fed needs to cut rates soon as the debt ceiling and banking crisis risking looming.
The energy index decreased by 5.1%, and the food index increased by 7.7%. Compared to the previous month, the CPI rose 0.4%, much higher than 0.1% in March but matching market expectations.
Meanwhile, the core inflation rate also fell to 5.5% in April from 5.6% in the prior month, matching market estimates.
Bitcoin, Ethereum Price Rebounds
Bitcoin price jumps after the annual U.S. CPI inflation rate falls to 4.9%. BTC price is currently trading near $28k, up 1% in the last 24 hours. Meanwhile, ETH price also rises above $1850, up 1% in the last 24 hours.
The crypto market has followed suit with major altcoins Cardano, XRP, Solana, Dogecoin price rising higher.
With the CPI cooling in April, the U.S. Dollar Index (DXY) fell below 101.5o. The continuous fall, especially to 101.50, will confirm a bullish momentum to $30,000, and other cryptocurrencies including Ethereum will follow suit.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
