Bitcoin Reacts to US Inflation Data, Hits $64,000 Amid Volatile Day

Bitcoin, the leading cryptocurrency, witnessed a day of fluctuations, responding to various events with both declines and rises in value.

BTC initially surged ahead of the release of the Producer Price Index (PPI) data, but began to decline during Federal Reserve President Jerome Powell's speech. However, it rebounded following reports of Wisconsin's investment in a Bitcoin ETF.

Amidst this volatility, crucial inflation data from the USA was announced, impacting both Bitcoin and the Dollar (DXY).

Here are the key figures from the announced data:

• Consumer Price Index (CPI) Monthly: Announced 0.3% – Expected 0.4% – Previous 0.4%
• CPI Annual: Announced 3.4% – Expected 3.4% – Previous 3.5%
• Core CPI Monthly: Announced 0.3% – Expected 0.3% – Previous 0.4%
• Core CPI Annual: Announced 3.6% – Expected 3.6% – Previous 3.8%

The CPI serves as a crucial indicator for measuring changes in consumer purchasing trends and US inflation. A higher than expected value is viewed positively for the USD, indicating a bull market, while a lower than expected value suggests a bear market for the USD.

Following the release of the CPI data, Bitcoin and the Dollar reacted in the following manner.