According to a report from the US Bureau of Labor Statistics (BLS), the consumer price index (CPI), which measures the overall change in the price level of consumer goods and services, rose 0.3% in April. On an annualized basis, the CPI growth rate was only 3.4%.
In the US, the CPI is considered the main indicator of inflation and has a decisive influence on the decisions of the Federal Reserve System (FRS). Investors who adhere to short-term speculative tactics are thus given a signal about a possible reduction in interest rates by the Fed in the near future.
The increased availability of debt capital could lead to a massive sell-off in highly volatile financial instruments such as digital currencies. As well as the flow of liquidity into the assets of the traditional financial market. Accordingly, the sale of crypto assets should lead to a drop in their market value. However, this did not happen, and the flagship cryptocurrency, on the contrary, strengthened their positions grew by 7.5%, CoinMarketCap notes.
Bitcoin is currently trading between $65,600 and $66,300. On the weekly timeframe, BTC growth was more than 8%.
According to CoinMarketCap analysts, a significant role in improving investor sentiment was played by the positive influx of liquidity into spot Bitcoin ETFs and the official acceptance of this form of long-term investment by government institutions.
The Wisconsin Investment Board (SWIB), which manages assets for the state's pension system, reported more than $164 million in investments in spot Bitcoin ETFs from BlackRock and Grayscale Bitcoin Trust.
Source: Bits
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