Crypto Markets Rally on Softer U.S. Inflation Data: Bitcoin Surges Past $66,000
Crypto markets saw a significant rally on Wednesday as softer-than-expected U.S. inflation data sparked a surge in digital assets. Bitcoin (BTC) broke past $66,000 for the first time since April 24, with a more than 7% increase over the past 24 hours. Ether (ETH) also saw gains, trading near $3,000 with a 4% advance.
Leading the charge among major cryptocurrencies were Solana (SOL) and Near (NEAR), with 8% and 12% jumps, respectively. The CoinDesk 20 Index (CD20) also saw a 6% increase, reflecting the overall positive sentiment in the market.
The rally was fueled by April’s Consumer Price Index (CPI) figures, which showed a slight decrease from March, along with a slower retail sales report. Investors welcomed the news as a sign that the Federal Reserve may not need to consider interest rate hikes in response to rising inflation and a strong economy.
Analysts at Bitfinex described the data as a “bullish regime shift,” highlighting the potential for risk assets to benefit from the Fed’s dovish stance and balance sheet run-off plans. Traditional markets also saw gains, with the S&P 500 index reaching a new all-time high, indicating a return of risk appetite.
Swissblock analysts noted that Bitcoin’s breakout from a recent downtrend was a significant development, with the potential for prices to rally towards $69,000 and even reach new all-time highs at $84,000. The firm also predicted a strong performance for altcoins in the coming days as Bitcoin leads the way in the market.
