MicroStockHub/E+ via Getty Images
Bitcoin (BTC-USD) rallied on Wednesday, erasing much of the previous session’s losses, after encouraging data on consumer inflation led traders to ramp up bets that the Federal Reserve will cut interest rates in September. .
The world’s largest cryptocurrency (BTC-USD) up 3.9% Outflows from U.S.-listed spot Bitcoin exchange-traded funds hit their highest level in more than a month on Tuesday, rising to $69,300 after hitting a low of $661,000 on Tuesday. The king of altcoins, Ethereum (ETH-USD), also gets a boost up 2.8% Price is $361,000.
The category recorded net outflows of $200.4 million on Tuesday, more than double Monday’s $64.9 million loss, ahead of the much-anticipated CPI data and subsequent Federal Reserve meeting, according to provisional data posted by Farside Investors on its website.
Inflation unexpectedly slowed in May, with the consumer price index unchanged from a month ago, below expectations of +0.1% and stagnant from +0.3% in April. Excluding volatile food and energy costs, core CPI fell to +0.2% from +0.3% last month (consensus was +0.3%).
The lower-than-expected data brought good news to the Federal Reserve as it seeks to lower inflation to its 2% target. Of course, market participants will be paying close attention to the language in the FOMC policy statement, expectations for the economy and interest rates in the summary of economic forecasts, and comments from Fed Chairman Powell at his post-decision press conference, all of which will be discussed later this afternoon. announced.
