News
Bitcoin Rises as Traders Await US Inflation Data (Cryptocurrency:BTC-USD)
MicroStockHub/E+ via Getty Images
Bitcoin (BTC-USD) took a bid in late morning trading Monday as traders prepare for April inflation data, which is set to potentially shape the outlook for monetary policy.
The first-ever cryptocurrency rose 2.6% to $62.9k as of 11:23 a.m. ET, clearing the May 10th sale. But, since hitting an all-time high of more than $73,000 in mid-March, bitcoin (BTC-USD) has gone through a downward spiral, partly due to the decline in the number of transactions. Ether (ETH-USD) rose 0.7% to $2,95,000 at the time of writing.
Traders are anticipating one or two interest rate cuts from the Federal Reserve later this year. Following March inflation data, signs of a weakening labor market have strengthened optimism that inflation will also ease further.
Markets will digest both producer and consumer price indicators this week, with the former arriving on Tuesday and the latter on Wednesday. Critical economic reports will give traders a better idea of if/when the Fed might start cutting rates this year. It’s no secret that inflation has been sticky this year, with a slew of Fed officials asking for higher rates for longer periods.
Coinciding with the rise in risk assets, cryptocurrency-related stocks posted intraday gains, including MicroStrategy (MSTR) +5.4%, Global Coinbase (CURRENCY) +0.9%, Digital Galaxy (OTCPK:BRPHF) +0.6%, Riot control platforms (REVOLT) +4.6%, Digital Marathon (MARA) +2.7% and Bakkt (BKKT) +6%.