Bitcoin Prices Surge Above $65,000 Today Amid Favorable CPI Report and Rising Investor Sentiment

Bitcoin prices surged today, buoyed by a favorable CPI report, reaching a fresh weekly peak surpassing $65,000.

Source:www.innova.com.tr

On May 15, Bitcoin surged to $65,150 following the Wall Street opening, driven by the release of the Consumer Price Index data and its potential impact on interest rate cuts in 2024. According to data from Markets Pro, BTC climbed 6.61% from $61,299 to an intraday high of $65,129 on May 15. Several factors, notably a CPI print lower than anticipated, have bolstered investor sentiment, contributing to the upward momentum in Bitcoin's price.

Bitcoin Saw A Rally Fueled By Softer Than Expected CPI Data

Bitcoin's price responded to the April Consumer Price Index (CPI) data, which came in lower than expected at 0.3%, according to the U.S. Bureau of Labor Statistics (BLS). The year-on-year rate rose to 3.2%, exceeding estimates of 0.4% and March's 0.4%. The BLS report highlighted that increasing shelter and gasoline costs contributed over seventy percent of the monthly increase in the index for all items.

Following the CPI release, market participants began deliberating on the possibility of the Federal Reserve implementing rate cuts in 2024. As per the CME's FedWatch tool, the probability of a June rate cut stands at just 3.1% at the time of writing. This indicates that market participants anticipate the U.S. central bank to maintain rates in June and July, with the first potential cut projected for September at 53%. The Kobeissi Letter provided insights on CPI data, noting that the inflation rate dipped to 3.4%, marking the first decrease in CPI inflation over the last three months.

Spot Bitcoin ETF Inflows Have Turned Positive

Positive inflows into spot Bitcoin ETFs are contributing to the current bullish sentiment among investors. On May 14, U.S. spot Bitcoin ETFs saw a daily net inflow of $100.5 million, with ARK 21Shares' Bitcoin ETF (ARKB) leading the inflows, surpassing the usual outflows from the Grayscale Bitcoin Trust.

Data from Investors indicates that approximately $133.1 million flowed into ARKB on that day, bringing its cumulative net inflow to $2.28 billion. Conversely, GBTC experienced another $50.9 million outflow, resulting in cumulative net outflows of $17.68 billion. Overall, U.S. spot Bitcoin ETFs have received around $11.84 billion in cumulative net inflows to date. 

Despite this positive trend, data from The Block suggests that spot Bitcoin ETF flow volumes have been decreasing since peaking on March 5. However, institutional interest remains evident, with the State of Wisconsin Investment Board disclosing holdings of approximately $164 million in spot Bitcoin ETFs. These developments underscore a growing institutional appetite for Bitcoin investment products, which serves as a favorable catalyst for BTC's price.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.