Bitcoin Surges Past $64,000 as US CPI Inflation Rate Cools to 3.5%

The US Consumer Price Index (CPI) inflation rate cooled to 3.5%, below the expected 3.8%. This data point triggered a sharp increase in Bitcoin's price, breaking the $64,000 mark.

Ethereum also rose, nearing the $1,900 level as the broader crypto market saw a surge in buying. The rapid price rise was partly fueled by short positions being liquidated, with over $135 million in shorts closed out in just 60 minutes.

The cooling inflation rate strengthens the case for a Federal Reserve interest rate cut, which is bullish for cryptocurrencies. Lower rates typically weaken the dollar and push investors towards higher-risk assets like Bitcoin.