Cryptocurrency markets emerged energized before the Wall Street open on April 12, as Bitcoin (BTC) neared a 10-month high following the release of the U.S. Bureau of Labor Statistics' Consumer Price Index (CPI) data. The CPI data showed an increase of 5.0 percent over the 12 months up until March 2021. Despite expectations that the data showed slowing inflation, Tedtalksmacro called it a great inflation print for bulls.

The BTC price action showed signs of a break of its bear market, as popular trader and analyst Rekt Capital noted that BTC/USD was continuing to build on an impressive daily close. The data thus produced a level of optimism amongst crypto markets prior to the Wall Street open, with further upside in line with equities being expected. Markets commentator Skew, however, stated that the market will hunt for liquidity like every other CPI day and significant moves will cause liquidations on exchanges.

Despite this good news, expectations on rate hikes moved only modestly. The CME Group's FedWatch Tool showed that there remained a 65% chance of a rate hike taking place at the next Federal Open Market Committee (FOMC) meeting in three weeks.

In conclusion, the March CPI data showed an increase smaller than expected, but it was interpreted positively by the crypto markets. This lead to Bitcoin rivaling a 10-month high before the Wall Street open, with some optimism being felt in the markets. Although there was a chance of a rate hike at the following FOMC Meeting, the expectations only moved marginally and the market will hunt for liquidity on this day as bad news could cause liquidations.



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