Bitcoin rallies to $66,000 as inflation pressure eases
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Bitcoin (BTC) climbed to $66,400 on Wednesday after the April Consumer Price Index (CPI) showed signs of easing inflation pressures, according to data from CoinGecko.
The US Bureau of Labor Statistics reported a decrease in the CPI to 3.4% year-over-year in April, down from 3.5% in March. Similarly, the core CPI, which omits food and energy prices, fell to 3.6% from the previous 3.8%. Both CPI figures matched market forecasts, with monthly increases of 0.3%.
The reading provided some relief after earlier CPI reports suggested more persistent inflation, which dampened expectations for an early Federal Reserve interest rate cut.
With inflation seemingly reversing course, investors are now pricing in a 75% probability of a rate cut in September, according to the CME FedWatch Tool.
Bitcoin surged past $63,000 briefly after inflation data was released. The flagship crypto has extended its rally over the past hours. At the time of writing, BTC is trading at around $65,900, up nearly 7% in the last 24 hours, according to CoinGecko’s data.
The overall crypto market cap also experienced growth, rising almost 6% to approximately $2.5 trillion. Major altcoins followed suit, with Ethereum (ETH) crossing the $3,000 threshold, up 4%, and Solana (SOL) breaking the $150 level with an 8% gain.
Bitcoin may have hit the bottom
Bitcoin (BTC) may have exited the post-halving “danger zone” – the three-week period following the Bitcoin halving event, said technical analyst Rekt Capital in his recent post. He suggests that Bitcoin has transitioned to the accumulation phase.
If historical patterns hold, the next bull market peak could occur between mid-September and mid-October 2025, he noted.
“Currently, Bitcoin is accelerating in this cycle by approximately 200 days now,” the analyst stated. “So the longer Bitcoin consolidates after the Halving, the better it will be for resynchronising this current cycle with the traditional Halving cycle.”
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Author: Vivian Nguyen
