Spurred by better-than-expected US Consumer Price Index (CPI) data, Bitcoin rose 1.6% in the half-hour bar at 13:30 (BST) to close at $28,197.
The move was accompanied by massive volume that broke the four-day selloff of major cryptocurrencies.
Bitcoin uncertainty weighs on broader macro factors
After breaking below $30,000 on April 17, BTC found support at $27,000 on April 24.
It has since traded between $27,280 and $30,050, with both limits showing strong support and resistance as indicated by multiple touches in the respective bands.
Rejected at resistance at $29,940 on May 6, BTC closed the daily red candlestick for four days in a row, losing 8% during this period.
The current macroeconomic narrative focuses on the $31 trillion debt ceiling and whether the US will default if the bipartisan deal cannot be scrapped.
Secretary of the Treasury Janet Yellen Without a deal, the administration warned it would run out of money by June 1.
Meanwhile, the Fed’s rate hike program seems to have had the desired effect, at least month-on-month, contrary to expectations.
May 3, central bank to raise interest rates 25 basis points, the federal funds interest rate will be 5.00% to 5.25%. His next FOMC meeting ends on his 7th. June 14thcurrently on the market 87% Supporting no rate hikes, perhaps in recognition of the weaknesses in the banking industry seen in recent weeks.
consumer price index data
CPI rose 4.9% in April, below expectations of 5%.
Core CPI still increased 0.4% in April against expectations of an increase of 0.4%. This brings core CPI year-over-year to 5.5%, unchanged from last April.
Like the CPI, the Core CPI tracks the prices of goods and services, except that it excludes food and energy prices, which are said to be too volatile to be included. Central banks use core CPI rather than CPI to inform policy.
Meanwhile, Bitcoin has been strong throughout this period of uncertainty, even briefly showing signs of safe-haven properties during the banking crisis.
For now, all eyes will be on June 14 as markets await the Fed’s assessment, but many markets are waiting for a pause that could lead to a turnaround.
