The Bitcoin price is once again climbing upwards, with inflation figures from the United States serving as the primary catalyst for the surge. Since the release of the inflation numbers, Bitcoin increased its market capitalization by approximately $30 billion and is currently being traded slightly below $66,000 - up about 8% during the last week as Ethereum is up 0.1% in the same period. Among other factors, the inflation figures led to the U.S based spot Bitcoin ETFs amassing a total of $303 million yesterday, according to Farside. Despite the positive influence of these inflation figures, they were in line with prior expectations.
NBX maintains its position as the best cryptocurrency exchange in the Nordics when it comes to AML.
Data from the Bureau of Labor Statistics (BLS) reveals that the Consumer Price Index (CPI) in the United States for the month of April experienced a 0.3% increase month-over-month and a 3.4% increase year-over-year. Economists surveyed by Dow Jones had previously anticipated a rise of 0.4% and an annual increment of 3.4%. Consequently, the CPI was slightly lower than the month-over-month forecast but aligned with the year-over-year prediction. Core CPI, which excludes food and energy, was reported at 0.3% month-over-month and 3.6% year-over-year, precisely matching the economists’ preliminary forecasts. The financial market responded favourably to the CPI figures meeting expectations and, in one instance, even coming in a notch below expectations. This resulted in the collective index S&P 500 (Standard & Poor's 500) rising to a new all-time high, the industry-heavy Dow Jones Industrial Average the same and likewise for the technology-heavy Nasdaq index.
The prevailing consensus following the release of the data is that the April figures provided a much-needed respite rather than a cause for celebration. As one economist succinctly put it: “At least we did not get a fourth month with a higher than expected CPI”. In all, there is a widespread consensus that this does not significantly alter the Federal Reserve’s future prospects.
In terms of macroeconomic future prospects, there is a common consent that the CPI figures do not substantially alter the overarching narrative. As I have discussed previously, it seems that Jerome Powell, the head of the Federal Reserve, is not in a hurry to reduce interest rates. Most recently on Tuesday, Powell, who had taken the trip to visit Amsterdam, acknowledged that this year’s inflation figures have been “higher than everyone expected”. He further added: “What this has told us is that we have to be patient and let the restrictive policy work”. Powell reiterated that it is unlikely that there will be a need to increase interest rates further.
NBX would like to wish everyone a happy Bitcoin Pizza Day in advance. Next Wednesday, it will be 14 years since Laszlo Hanyecz exchanged 10.000 Bitcoins for two pizzas. With today's Bitcoin price, that equals about $659 million in BTC.
This text is intended to inform and is not an investment recommendation.
Best regards,
Adam Jakobsen.
NBX.
