The chronically high costs that have burdened American citizens have some highly encouraging news from the U.S. Bureau of Labor Statistics this Wednesday morning. Inflation fell sharply in March, falling to its lowest level in a year, according to the Consumer Price Index (CPI) — which is a key economic indicator that analyses the average change in consumer prices for a variety of products and services. In light of this news, the crypto market reacted favorably with Bitcoin’s price rising by 1.5% in the past few minutes.
Crypto Market Reaction
As reported by CoinGape, the core CPI annual rate in the United States was 5.6% in March, which was expected to be 5.6% and the previous value was 5.5%, ending five consecutive months of decline. This in turn has led to a significant drop in the U.S. Dollar Index (DXY), which currently sits at 101.70.
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Consequently, Bitcoin’s price has continued its upward trajectory as it’s currently exchanging hands at $30,343 whereas the altcoin supremo, Ethereum, also witnessed a marginal uptick of 0.94% in minutes following the release of the CPI data. As things stand, ETH’s price is trading at $1,897 which represents a gain of 0.34% in the past 24 hours.
U.S. Stock Markets Rise
Additionally, the U.S. stock futures moved higher after the key inflation measurement indicated that consumer prices grew in March by a smaller amount than what had been anticipated. Futures contracts based on the S&P 500 index traded 0.8% higher, whereas, the Dow Jones Industrial Average futures rose 221 points, which is equivalent to a gain of 0.6%, while futures on the Nasdaq-100 rose by 1%.
Gold, on the other hand, rallied 1.2% to $2,043.30 a troy ounce, which translates to a 13-month high following the U.S. CPI print. The Federal Reserve’s interest rate decision in May could be affected by the data in the report. Although the CPI is still up 5% year over year, this may strengthen the case for the central bank to halt its rate-hiking regime.
Also read: CFTC Bids Against SEC In A New Crypto Fraud Case; Defines Digital Assets As Commodities
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
