Bitcoin jumps above $65.9k as US inflation data fuels rate-cut bets

Bitcoin and other major cryptocurrencies were trading higher in Thursday's trade after a milder U.S. inflation report raised expectations the Federal Reserve will deliver two interest rate cuts this year.

U.S. data on Wednesday showed the consumer price index (CPI) rose by 0.3% in April, below an expected 0.4% gain, raising hopes the Fed can cut rates by 50 basis points this year, with the first quarter-point reduction fully priced for September.

As a result of this development, the global cryptocurrency market cap surged by 5.3% to approximately $2.38 trillion within the last 24 hours.


As of 11:58 a.m., Bitcoin was trading 6.6% higher at $65,983, while Ethereum witnessed a 4% rise to $3,019. Several altcoins also saw notable gains, with BNB (2.7%), Solana (12.1%), XRP (3.7%), Dogecoin (6%), Cardano (7.6%), Shiba Inu (8.8%), Avalanche (7.4%), and Polkadot (7.7%) among those experiencing increases.

"The latest CPI data showed that inflation in April showed signs of cooling down. The news had an immediate impact on financial markets including digital assets with Bitcoin surging to the $66,000 mark. Bitcoin broke the downward trend and broke the immediate resistance level of $65,000, signaling a larger rally in the coming weeks across digital assets," said Shivam Thakral, CEO of BuyUcoin.

Edul Patel, CEO of Mudrex, said, "Bitcoin rose above the $66,000 level in the past 24 hours following softer-than-expected US inflation data. The surge indicates that bulls have absorbed the supply. If bulls can sustain above the current level, the next resistance is set at the $67,100 and the support lies at the $65,800."

The volume of all stablecoins is now $93.41 billion, which is 93.73% of the total crypto market 24-hour volume, as per data available on CoinMarketCap.

In the last 24 hours, the market cap of Bitcoin, the world's largest cryptocurrency, surged to $1.299 trillion. Bitcoin's dominance is currently 54.43%, according to CoinMarketCap. BTC volume in the last 24 hours rose 72.3% to $42.36 billion.

Tech view by Sathvik Vishwanath, Co-Founder & CEO, Unocoin
Technically, Bitcoin has broken out of the symmetrical triangle at $63,300, showing bullish momentum. However, the overbought RSI and candlestick patterns like the Doji around $66,200 indicate possible market indecisiveness.

Key levels to watch are support at $65,150 and $63,300, with resistance at $67,300 and $68,545. A break below $65,150 could trigger a bearish correction.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)