The release of U.S. Consumer Price Index (CPI) data for April 2024 showed an inflation of 0.3%, spiking Bitcoin and Ethereum prices.
The US CPI Inflation Report April 2024 brought some relief for consumers, increasing 0.3% from March. According to the U.S. Bureau of Labor Statistics (BLS) report, a year-over-year inflation rate of 3.4%, a decline from 3.5% in March, was recorded.
Interestingly, the decline in inflation somehow impacted the cryptocurrency market, especially the Bitcoin (BTC) and Ethereum (ETH) prices.
What Does the US CPI Inflation Report Say?
On May 15, April 2024, the CPI inflation report was released, indicating a sign of relief for consumers. CPI is the record of the average change over time in the values paid by urban consumers for everyday goods and services.
CPI for Urban Consumers (CPI-U) I Source: Bureau of Labor Statistics
In April 2024, the CPI for Urban Consumers (CPI-U) report hit 0.3% in inflation, excluding food and energy. However, the CPI inflation was lower than the previous two consecutive months, when the inflation recorded 0.4%.
The drop in the inflation rate relieved consumers and shifted their interest towards the crypto market, spiking the prices of BTC and ETH.
CPI Report’s Reaction to BTC & ETH Prices
In response to the CPI report, BTC and ETH prices recorded a sudden surge within 24 hours. On May 16, Bitcoin Magazine shared the same news on X.
#Bitcoin up 7% today pic.twitter.com/rhChCE5CKC
— Bitcoin Magazine (@BitcoinMagazine) May 15, 2024
The market was bullish when writing, with BTC at $66,279.01, indicating a sudden surge of 5.57% in a day with a market cap of $1,305,374,973,689. On May 15, BTC was trading at over $63K.
ETH, alternatively, after hitting $3,035.47 on May 16, is back to $2,997.88 with a market cap of $360,017,853,226 and $15,463,006,600 in volume. Within a 1-day time frame, the coin recorded a 3.06% surge.
The sudden hike in BTC and ETH prices indicates booming interest of investors and traders towards the crypto market.
BTC Vs. ETH I Source: DefiLlama
On May 16, BTC’s total value locked (TVL) was recorded at 1.12 Billion, according to DefiLlama. On the other hand, ETH had 53.495 billion in TVL, showcasing that crypto enthusiasts and traders are investing more in the Ethereum network than Bitcoin.
Next CPI Release Date?
The next release date for the May 2024 CPI data was scheduled for June 12, 2024. The upcoming report is expected to bring more relief for consumers in terms of inflation and the crypto market.
