Bitcoin Hits $66K as Soft Inflation Data Sparks Crypto Rally

Crypto
markets
rallied
on
Wednesday
as
softer-than-expected

U.S.
inflation
data
jolted
digital
assets
from
their
stupor.

Bitcoin

(BTC)
surged
past
$66,000
for
the
first
time
since
April
24,
and
was
recently
up
more
than
7%
over
the
past
24
hours.
Ether

(ETH)
changed
hands
near
$3,000
but
underperformed
with
a
4%
advance
during
the
same
period.

Solana

(SOL)
and
near

(NEAR)
led
gains
among
crypto
majors
with
8%
and
12%
jumps,
respectively,
and
the
broader
market
benchmark
CoinDesk
20
Index
(CD20)
was
up
6%.

The
rally
occurred
as
April
U.S.
Consumer
Price
Index
(CPI)
figures
edged
lower
from
March,
coupled
with
a
slightly
sluggish
retail
sales
report.
The
data
came
as
a
relief
for
investors
fearing
that
reaccelerating
inflation
and
a
red-hot
economy
might
force
the
Federal
Reserve
to
walk
back
its
dovish
pivot
and
even
consider
interest
rate
hikes.

“Investors
consider
this
as
a
bullish
regime
shift,
as
it
marks
the
first
decrease
in
CPI
inflation
over
the
last
three
months,”
Bitfinex
analysts
said
in
a
market
update.
This,
together
with
the
Federal
Reserve
previously
announcing
its
intention
to
taper
the
central
bank’s
balance
sheet
run-off,
“is
seen
as
a
favorable
print
for
risk
assets,”
Bitfinex
added.

Looking
at
traditional
markets,
U.S.
equities
also
climbed
during
the
day,
with
the
S&P
500
index
gaining
more
than
1%
and
hitting
a
fresh
all-time
high,
underscoring
the
return
of
risk
appetite.

Today’s
bitcoin
surge
also
marked
a
break-out
from
a
downtrend
that
capped
prices
for
the
last
few
weeks,
Swissblock
analysts
said
in
a
Telegram
update.

“BTC
[is]
finally
making
the
bigger
move,”
Swissblock
said.
“We
have
been
waiting
for
the
trigger
for
the
release
of
a
larger
structure
since
March
high.
Today
we
got
that,”
referring
to
the
CPI
and
retail
sales
numbers.

The
analytics
firm
said
the
breakout
opens
the
way
for
BTC
to
rally
$69,000
first,
then
later
potentially
towards
new
all-time
highs
targeting
the
$84,000
price
level.
During
the
next
leg
up,
“altcoins
will
follow
strongly,”
the
report
added.