Bitcoin and Ethereum prices soar as US inflation eases, boosting market optimism for potential rate cuts.
The cryptocurrency market witnessed a significant boost as both Bitcoin (BTC) and Ethereum (ETH) prices soared following the latest US inflation data. The Consumer Price Index (CPI) for April revealed a modest increase of 0.3%, bringing a sense of relief after three months of heightened inflation concerns.
The recent data indicates a downward trend in US inflation, with the annual increase in consumer prices declining from its peak of 9.1% in June 2022. This easing of inflation has fueled optimism among investors, who now anticipate potential rate cuts by the Federal Reserve.
In response to the cooling inflation data, Bitcoin surged by 7.6%, reaching a live price of $65,686.32 USD, while Ethereum saw a 5.3% increase. This rally reflects growing confidence in the cryptocurrency market as investors speculate on favorable monetary policy shifts.
The positive market response underscores the significant impact of economic indicators on cryptocurrency prices. With the CPI showing signs of stabilization, market participants are hopeful that the Federal Reserve might consider easing monetary policy, potentially leading to lower interest rates and further boosting cryptocurrency valuations.
Stay updated with the latest cryptocurrency news and trends with coinbuzzfeed
