Markets
Cryptocurrency Markets Recover as US Core Inflation Hits 3-Year Low
Bitcoin rose 6% to $65,000, with Ether and Solana up 3% and 7% respectively.
Cryptocurrency markets rallied on Wednesday morning after the latest US inflation data fell short of economists’ expectations.
The United States Bureau of Labor Statistics reported that the consumer price index (CPI) rose 0.3% in April, lower than the Dow Jones estimate of 0.4%. On an annualized basis, the consumer price index rose 3.4%, in line with expectations but down from 3.7% in March.
The CPI measures the average change over time in the prices paid by consumers for a basket of goods and services. It impacts cryptocurrency markets by influencing investor sentiment and economic forecasts; A lower-than-expected CPI can increase confidence in risky assets like cryptocurrencies, while a higher CPI can trigger inflation fears and potentially tighter policy measures from the Federal Reserve.
Bitcoin (BTC) is trading at $65,000, marking a 6% increase in the last 24 hours. According to data from CoinGecko, Ether (ETH) is up more than 3%, while Solana (SOL) is up nearly 8%.
Among meme coins, FLOKI (FLOKI) tops the charts with a gain of 13%. Dogecoin (DOGE) and Shiba Inu (SHIB) also recorded increases of between 2% and 4%.
Crypto analyst Justin Bennett She said, “BTC is hanging by a thread. The $61,000 support area is holding, but the longer Bitcoin trades below $65,000 in weekly and monthly ranges, the worse the situation will become.”
Michael Van de Poppe, CEO of MN Trading, told The Defiant that Ethereum is in the final stages of its correction. “About 10% more to go before reaching a higher temporal support level. The good times are just a few weeks away,” he said.
Meanwhile, the Wisconsin State Investment Council disclosed in a May 14 filing with the U.S. Securities and Exchange Commission (SEC) that it purchased approximately $100 million of the BlackRock iShares Bitcoin Trust (IBIT) and $64 million of the Grayscale Bitcoin Trust (GBTC).
AMC and GameStop tank
Shares of AMC Entertainment and GameStop fell in morning trading as momentum from the meme stock mania – reignited Monday by the social media return of “Roaring Kitty” – began to wane. AMC fell 30% on Wednesday morning, while GameStop shares tumbled 35%.
However, US stock markets overall posted gains following the inflation report. Both the S&P 500 and Nasdaq Composite hit record highs on Wednesday.
The S&P 500 rose 1%, while the tech-heavy Nasdaq rose 1.2%. The Dow Jones Industrial Average gained 0.8%.