US PPI Data Released: Bitcoin Rises on Weaker Inflation Signals

Yesterday's lower-than-expected Consumer Price Index (CPI) data sparked an upward movement in Bitcoin and altcoins. The BTC price rose above $64,000 following the release, while Ethereum and other altcoins also saw significant increases.

The CPI drop marked the strongest monthly decline since April 2020, with experts noting that the decrease in energy prices was the main reason for the slowdown in inflation.

Investors' expectations regarding the Federal Reserve's monetary policy have been reshaped following the CPI data. The probability of a Fed interest rate hike in July dropped to 16% from 40% prior to the release.

With the weakening likelihood of a tighter monetary policy from the Fed, appetite for risky assets like Bitcoin increased, pushing the BTC price higher.