The Federal Reserve left interest rates at the current level. Consumer Price Index for the U.S. [CPI] Data revealed that the inflation rate remained at 0.3% for May. It was a further surprise to the market. This inflation data was closely watched by investors to assess the U.S. economic state. Cryptocurrency investors also assessed this data and kept a close watch on Bitcoin. [BTC].
Bitcoin managed to make $1,500 a second after the news broke. BTC reached a peak of $69411.3. The king coin, however, dropped back down to $67,000. Even though BTC has dropped, many continue to make big bets. 10x Research has affirmed their optimism about BTC. Markus Thielen said,
“Our recommendation remains unchanged: to stick with the winners [Bitcoin] and avoid others [such as Ethereum]. Our previous analysis has shown that a lower CPI number tends to lift Bitcoin prices, and we anticipate this trend will continue.”
Ethereum’s price also experienced moderate gains. Ethereum [ETH] The price for example jumped by 3%, reaching a peak of $3652.
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Why Does Bitcoin Need This?
This research also reveals that Bitcoin Exchange-Traded Funds can be found. [ETF] The U.S. has seen significant inflows when inflation is slowing down. Thielen reminded investors that ETFs broke through their dry spell after the December CPI was higher than January. He added that.
“ETF flows turned positive at the end of January but only started to accelerate slightly ahead of the CPI data release on February 13. But when inflation again increased to 3.2% on March 12, Bitcoin ETF inflows stopped as the market priced out the narrative of 2-3 rate cuts.”
Bitcoin’s price was $67,368.95 at the time of publication, following a daily decline of 0.12%. This asset, with its market capitalization of $1.33 billion, continues to dominate the market.
Also Read: Bitcoin vs. Gold Debate Persists, Fidelity Expert Weighs In
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Source: watcher.guru