Bitcoin Surges Over 8% as Inflation Data Spurs Risk Asset Rally. Bitcoin prices (BTCUSD) soared more than 8% on Wednesday, as crypto traders aggressively bought tokens in response to fresh inflation data. The leading cryptocurrency surged from $61,300 to a session high of $66,300 per coin, marking a two-week peak and surpassing the 50-day moving average. This technical milestone suggests a potential continuation of the upward trend in the short term.
The rally was fueled by April’s consumer price index data, a crucial economic indicator and measure of inflation, which showed a slight decline to 3.4%, down from 3.5% in March. This marked the first decrease in inflation this year, reversing the upward trend observed in previous months. The cooling inflation was warmly received by markets, particularly among crypto enthusiasts and risk-tolerant investors, making it an excellent day for risk assets.
The bullish sentiment extended beyond Bitcoin, with other major cryptocurrencies also experiencing significant gains. Ethereum, the second-largest token by market capitalization, rose 5%, trading around the $3,000 mark, a level it reached just two days earlier. Overall, the cryptocurrency market grew by 5%, reaching a total valuation of $2.4 trillion. Bitcoin commands approximately 55% of this market, equating to just under $1.3 trillion, while Ethereum holds a market cap of $360 billion.
This surge in crypto prices comes amid broader positive movements in risk assets, as the moderation in inflation expectations provided a favorable backdrop for investments in more volatile markets. Bitcoin Surges Over 8% as Inflation Data Spurs Risk Asset Rally.
