Bitcoin rally to $29,400 as traders await CPI report and Fed pivot debate
Traders are getting ready for the release of the Consumer Price Index (CPI) report on April 12 as Bitcoin’s price soared to a ten-month high on April 10. The report is expected to provide insight into the Federal Reserve’s fight against inflation, and if it shows inflation dropping, it could further push Bitcoin’s upward move. The fact that Bitcoin’s intraday gains coincided with a decrease in U.S. equities is noteworthy, as it indicates the coin’s waning risk-on features.
Traders are debating whether the report will lead to a potential Fed pivot, as a drop in inflation prospects could shift the Fed towards a more dovish direction. Nonetheless, a 70% probability of the Fed lifting rates by 25 basis points in May could mean that Bitcoin’s gains are temporary.