Bitcoin surpassed $28 thousand after the release of U.S. inflation data

Bitcoin surpassed $28 thousand after the release of U.S. inflation data

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Author: Robert Strickland (crypto-journalist)
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Bitcoin surpassed $28 thousand after the release of U.S. inflation data
Bitcoin rate rose above $28 thousand after the release of inflation data in the U.S. in April
The value of the first cryptocurrency rose by $400 in 5 minutes after the U.S. Department of Labor published data on consumer prices in April

Bitcoin rate rose above $28,000 on the news of slowing inflation in the United States. After the publication of the U.S. Labor Department data on consumer prices in April, the value of the first cryptocurrency rose by $ 400 for 5 minutes, from $ 27.7 thousand to $ 28.1 thousand.

On May 10, it became known that inflation in the U.S. slowed to its lowest since April 2021. The U.S. consumer price index (CPI) fell to an annualized rate of 4.9 percent in April. Economists had previously forecast that the index in April would remain at the March level of 5%.

At 17:30 on May 10, the rate of bitcoin was fluctuating around $28.2 thousand. According to CoinGecko, the daily value of BTC rose by 2.7%.

Against the backdrop of slowing inflation in the U.S. to the best values in two years, the stock market has felt positive changes and is growing, said the head of the analytical department of AMarkets Artem Deyev. The rate of bitcoin is growing along with it - it does not directly correlate with the level of inflation, but its rate affects the S&P 500 index and the dollar, the expert explained.

The indirect influence is quite strong, said Deev. According to him, after the release of data on the decline in inflation, the futures on the S&P 500 rose, followed by an increase in the price of the cryptocurrency.

"Since it refers to risky assets, investors' interest increases against the background of stabilization of the economic situation in the country, while in case of instability they, on the contrary, prefer risk-free assets, such as government bonds," the analyst recalled.

The Cryptorg CEO Andrey Podolyan drew attention to the fact that the inflation data came out a little bit better than economists' expectations. However, according to the expert, there is a great reason to believe that this data is just "drawing.

Both Bitcoin and altcoins reacted with growth to the report of the U.S. Labor Department. Podolyan called $28.4-28.6 thousand an important zone for BTC. In overcoming these marks the bulls will gain full strength, but until it has not happened, the bears will try to put short positions from this range, the expert believes.

In general, according to Deyev, with a further decline in inflation in the U.S. bitcoin will rise in price. It will grow in price even if the Fed rate stays the same, just a little slower, according to the analyst. In his opinion, an optimistic forecast for the end of the year: bitcoin will reach $50,000 and a realistic one - about $39,000 to $43,000. The expert does not expect the rate to collapse.

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