Bitcoin surges 7% and surpasses $66,000

May 16, 2024  16:18

Bitcoin rose more than 7% to $66,124.59 amid news of a lower-than-expected US consumer price index, its highest level since March 25, according to Coin Metrics. In addition, the price of Bitcoin was above its 50-day moving average for the first time since April 13, reports

The US Labor Department's Bureau of Labor Statistics reported that the consumer price index rose 0.3% from March, slightly below the Dow Jones Industrial Average's forecast of a 0.4% increase. Compared to the previous year, consumer prices continued to grow by 3.4%.

"As the core US CPI declines for the first time in six months, we may see interest in risk assets such as cryptocurrencies leading to increased inflows into bitcoin ETFs," said Lina ElDib, an analyst at 21Shares.

According to her, Bitcoin has a unique position as an asset that is both risky and risk-averse, and many investors are committed to a long-term strategy for the crypto-asset. And while the US Federal Reserve's policies may cause Bitcoin volatility in the short term, it won't fundamentally change the cryptocurrency's long-term trajectory.

With Wednesday's surge, bitcoin is up 8.92% for the week, marking its best week since March 29 for the cryptocurrency, which is now on track to break a six-week slump. 

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