Bitcoin is having its best day since March following cooler April inflation reading

  • 📰 NBCLA
  • ⏱ Reading Time:
  • 65 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 29%
  • Publisher: 59%

Finance Finance Headlines News

Finance Finance Latest News,Finance Finance Headlines

Bitcoin jumped with stocks on Wednesday after the April consumer price index showed inflation eased from the previous month.

The price of the cryptocurrency was last higher by more than 5% at $64,910.57, according to Coin Metrics, and on pace for its best day since March 25. At one point, bitcoin traded above its 50-day moving average for the first time since April 13, though it has fallen below that level again."The slightly lighter than expected CPI number modestly increased the chance of a rate cut, which is still a strong influencer to bitcoin price," Owen Lau, an analyst at Oppenheimer, told CNBC.

"Although with the rate cuts still in question, recovery might be slow," she added."Typically, higher interest rates make risk-on assets like tech stocks and bitcoin less appealing, as investors can secure substantial yields from safer options such as U.S. Treasurys." Bitcoin holds a unique position as both a risk-on and a risk-off asset and many investors hold a long-term view of the crypto asset, ElDeeb explained, adding that while Fed policies may induce bitcoin volatility in the short term, it doesn't fundamentally change bitcoin's long-term trajectory.Lately, bitcoin has been more heavily influenced by macro factors, with industry catalysts like the launch of bitcoin ETFs and the halving in the rearview mirror.

With Wednesday's gain, bitcoin is now up 7% for the week – its best week since March 29 – and on pace to break a six-week slide. Bitcoin has been holding between $60,000 and $70,000 – minus a couple blips above and below that range – since March, when it ran up to new all-time highs and quickly pulled back. Investors and analysts have been expecting the cryptocurrency to remain rangebound for several months longer, absent strong catalysts.Bitcoin price may not retest this year's highs for another five months

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 319. in FİNANCE

Finance Finance Latest News, Finance Finance Headlines