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Breaking Bitcoin (BTC) Price Nears $70,000 as US CPI Softens to 3.3%

1 min
Updated by Lynn Wang
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In Brief

  • Inflation declined to 3.3% YoY, surprising forecasts of 3.4%, with core CPI also lower at 3.4%.
  • Bitcoin's price rose 3.7%, recovering to above $70,000 after a sell-off caused by CPI anticipation.
  • Securing $70,000 could lead BTC to $71,800, while failing may drop it to test $68,500 support.
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The US Bureau of Labor Statistics (BLS) reported that inflation declined to 3.3% on a year-on-year (YoY) basis. This was a surprising change in the headline Consumer Price Index (CPI), as the forecasts for the month of May were at 3.4%.

The core CPI also rose to 3.4% on a yearly basis, considerably lower than April’s 3.6% and the estimation of 3.5%. The core CPI differs from the headline CPI due to the exclusion of volatile food and energy prices.

While the macro-financial market came under heavy selling pressure, the crypto market took a different route. Bitcoin’s price marked an uptick, adding to the intra-day growth of 3.7%, bringing the trading price back above $70,000.

This was a crucial recovery for BTC as the anticipation surrounding CPI caused a massive sell-off in the crypto market just this week. As a result, Bitcoin’s price fell from $70,000 to $66,000 in 72 hours.

Reclaiming $70,000 is crucial in initiating a recovery for BTC and would also push the crypto asset towards $71,800. Breaching this would bolster Bitcoin’s price to chart a new all-time high above $73,650.

Bitcoin Price Analysis.
Bitcoin Price Analysis. Source: TradingView

On the other hand, if $70,000 is not secured as a support floor, BTC could drop back down to test $68,500. If this critical support floor is broken, it would invalidate the bullish thesis.

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Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
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