US Inflation Data Released: Here’s Bitcoin's Reaction! - Coin Bulletin

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With the inflation rate in the US being announced below expectations, there was a rapid upward movement in the prices of Bitcoin (BTC) and Ethereum (ETH).

The closely monitored Consumer Price Index for April in the US economy has been released. According to the data, the annual inflation rate fell to 2.3%, remaining below the market expectation of 2.4%. This decline in inflation has rekindled market expectations that the US Federal Reserve may continue its interest rate cuts.

After the inflation data was announced, the cryptocurrency markets became active. Bitcoin, which was trading at around 103,600 dollars before the announcement, quickly rose to 103,900 dollars after the news. A similar movement was observed in the price of Ethereum (ETH). Before the announcement, ETH was at 2,500 dollars, and after the data, it increased to 2,522 dollars.

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The US Dollar Index, which was at 101.5 just before the data, (DXY), fell to 101.47 as inflation came in below expectations, paving the way for increased demand for cryptocurrencies such as Bitcoin and Ethereum.

With approximately 5 weeks remaining until the next interest rate decision meeting of the FED, uncertainty prevails in the markets. Whether this new data will support the FED's interest rate reduction policies and the future direction of Bitcoin prices are among the main topics that investors will closely monitor.