April’s US CPI lower than anticipated, Bitcoin reaches $63.7K

The latest government report on April’s Consumer Price Index (CPI) showed a slight easing of inflation, with the CPI rising 0.3% compared to economist forecasts of 0.4%. On a year-over-year basis, CPI was higher by 3.4%. Core CPI, which excludes food and energy costs, also rose 0.3% in April and was higher by 3.6% on a year-over-year basis.

Following the CPI report, the price of Bitcoin (BTC) surged over 1% to reach $63,700. The anticipation of a spot ETF and the impact of interest rates staying elevated had put pressure on Bitcoin’s price. The decline in inflation had led to expectations of easier monetary policy in 2024, but the recent uptick in inflation and economic growth has reduced the likelihood of central bank rate cuts.

In addition to the inflation data, retail sales for April also showed a neutral reading, with retail sales ex-autos rising 0.2%. Traditional markets responded positively to the soft inflation and economic data, with S&P 500 futures rising 0.5%, Treasury yields sliding, the U.S. dollar index dropping, and gold prices increasing.