The cryptocurrency market dynamics increasingly mirror the oscillations of the stock market. Amid news of a lower-than-expected Consumer Price Index (CPI) in the U.S., Bitcoin’s (BTC) value surged along with the stock market on Wednesday. As per Coin Metrics, BTC price soared over 7% to $66,124.59, reaching its highest value since March 25.
In another first since April 13, Bitcoin’s value exceeded the 50-day moving average. The Labor Department’s Bureau of Labor Statistics reported on Wednesday that the U.S Consumer Price Index rose by 0.3% from March, slightly lower than the Dow Jones Index forecast of 0.4%. Consumer prices persist in rising, with a 3.4% increase compared to last year.
Leena ElDeeb, a 21Shares analyst, noted, “We are seeing a resurgence in investor interest for risk assets like cryptocurrency, leading to increased inflows into spot bitcoin ETFs, as the core U.S Consumer Price Index declines for the first time in six months.” ElDeeb further observed that Bitcoin has a unique position as an asset linked to risk and as a risk-exempt asset. Many investors opt for a long-term asset strategy concerning this crypto asset. While the U.S Federal Reserve’s policies may cause Bitcoin’s volatility in the short term, they will not fundamentally alter the cryptocurrency’s long-term trajectory.
Bitcoin’s surge on Wednesday led to a week-long growth of 8.92%, marking its best week since March 29 and setting it up to recover from a six-week decline.
This post was last modified on 05/16/2024