April US CPI Drop To 3.4%; BTC Price Surge To $64K

The Consumer Price Index, the key inflation indicator issued by the U.S. government, rose to 3.4% over the last 12 months in April, signaling sustained price growth in the economy. This figure surpassed market expectations, which had anticipated a decrease to 2.9%.

In parallel, the price of Bitcoin experienced a sudden surge to $64k, marking a 3.57% increase within the past 24 hours.

US CPI Drop To3.4%

U.S. consumer prices rose less than expected in April, indicating a potential slowdown in inflation at the beginning of the 2nd quarter. This news has raised hopes in financial markets for a possible interest rate cut in September. 

The Consumer Price Index (CPI) increased by 3.4% over the 12 months ending in April, a slight dip from the 3.5% rise seen in March. Despite this, progress in curbing inflation has stalled, with the annual increase still significantly above pre-pandemic levels (9.1% in June 2022).

The Labor Department’s Bureau of Labor Statistics (BLS) reported a 0.3% rise in the consumer price index last month, following increases of 0.4% in both March and February. This latest data suggests a slowdown in price growth, aligning with expectations for a gradual easing of inflationary pressures in the coming months.

Core CPI Surge To 3.6%

At the same time, the Core CPI, which excludes food and energy prices, rose by 0.3% monthly, aligning with Wall Street estimates. Year-over-year (YoY), the Core CPI increased by 3.6%, slightly lower than the 3.8% surge observed in the previous month.

Bullish News For Bitcoin

Following the release of the CPI report, the price of Bitcoin experienced a sudden surge, jumping from $61,800 to nearly $64,000, representing a 3.8% increase. Concurrently, Bitcoin’s trading volume also surged by 10.9%, reaching $28.8 billion, while its market capitalization climbed to $1.25 trillion.