Bitcoin experienced a notable uptick in price on Thursday, buoyed by a weakened dollar subsequent to softer consumer inflation readings for April, though the cryptocurrency maintained a relatively subdued sentiment amidst broader market caution towards digital assets.
The world’s largest cryptocurrency surged by 6.4% within the past 24 hours, reaching $65,844 by 01:21 ET (05:21 GMT), with a peak at $66,600 before encountering a minor pullback.
The rebound in Bitcoin‘s price came in the wake of its earlier dip to $60,000 earlier this week, predominantly propelled by a decline in the dollar, which dipped to one-month lows following the release of softer consumer price index (CPI) figures for April. While headline CPI growth lagged behind expectations, core CPI moderated in line with forecasts.
These data releases, coupled with underwhelming retail sales figures, fostered some optimism regarding a potential moderation in inflation in the forthcoming months, potentially emboldening the Federal Reserve to consider interest rate adjustments. However, inflation levels continued to exceed the central bank’s targeted range of 2%, and numerous Fed officials emphasized the necessity for greater assurance before contemplating rate adjustments.
This cautious stance tempered significant upward momentum for Bitcoin, maintaining the token within a trading range of $60,000 to $70,000 that has persisted for the past two months. Furthermore, despite heightened risk appetite evidenced by record highs in Wall Street, enthusiasm did not translate to the cryptocurrency sphere.
Additionally, concerns regarding regulatory challenges cast a shadow over crypto markets, particularly with reports suggesting heightened regulatory scrutiny from the Securities and Exchange Commission (SEC) directed towards the sector.
Bitcoin’s range-bound performance coincided with stagnant capital flows and trading activity in spot exchange-traded funds, which played a pivotal role in the cryptocurrency’s rally in March.
Meanwhile, major altcoins also experienced notable gains on Thursday, albeit many remained below the highs witnessed in March during the Bitcoin rally. Ethereum, the second-largest cryptocurrency, saw a 3.4% increase, while XRP registered a 3.6% uptick. Solana emerged as a standout performer, surging by 12.3% to achieve a peak not seen in over a month, although it remained below its 2024 peaks.
