Bitcoin reaches $64.7K milestone while US CPI reports lowest core inflation in 3 years

Bitcoin (BTC) surged past $64,000 on May 15 as core inflation in the United States reached its lowest point in three years. After the Wall Street open, BTC/USD reached local highs of $64,700, thanks to a positive Consumer Price Index (CPI) report. The CPI for April came in at 0.3%, slightly below expectations, but still in line with predictions. The data also showed that core inflation fell to its lowest levels since 2021, potentially paving the way for interest rate cuts. However, not everyone shared the same optimism, with some noting that the Producer Price Index (PPI) numbers from the previous day showed a third consecutive monthly increase. Despite this, Federal Reserve Chair Jerome Powell maintained a dovish tone and market odds for near-term rate cuts remained largely unchanged. In the Bitcoin market, the reaction to the CPI report led to a significant shift in exchange order books, with price eating through liquidity to the upside. Traders are now watching for BTC to reclaim the 200-period exponential moving average as support on four-hour timeframes, currently at $63,195, in order for market confidence to return. It is important to note that this article does not provide investment advice and readers should conduct their own research before making any decisions.