Bitcoin halts four day slide as CPI comes in better than expected Bitcoin halts four day slide as CPI comes in better than expected
Bitcoin continues chugging along as macro economic uncertainty endures.
2 min read
Updated: May. 10, 2023 at 4:39 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Spurred by better-than-expected U.S. Consumer Price Index (CPI) data, Bitcoin saw a 1.6% increase in the 13:30 (BST) 30-minute candle to close at $28,197.
The move was accompanied by high volume to break a four-day slide for the leading cryptocurrency.
Wider macro factors weigh heavy with Bitcoin uncertainty
Since breaking below $30,000 on April 17, BTC found support at $27,000 on April 24.
It has since been ranging between $27,280 and $30,050 – with both limits showing strong support and resistance, as signified by multiple touches at the respective bands.
Having been rejected at $29,940 resistance on May 6, BTC closed consecutive red daily candles over a four-day period – losing 8% during this time frame.
The current macroeconomic narrative is focused on the $31 trillion debt ceiling and whether the U.S. will default if a bipartisan agreement cannot be thrashed out.
Treasury Secretary Janet Yellen warned that the administration will run out of money by June 1, if a deal cannot be struck.
Meanwhile, the Fed’s rate hike program looks to be having the desired effect, at least against month-over-month expectations.
On May 3, the central bank raised rates by 25 basis points, bringing the Federal Funds Rate to 5.00% – 5.25%. The next FOMC meeting will conclude on June 14, with markets currently 87% in favor of no hike – likely in acknowledgment of ongoing banking weaknesses witnessed in recent weeks.
CPI data
CPI rose 4.9% in April, coming in less than the expected 5% rate.
Nonetheless, Core CPI grew 0.4% in April versus expectations of a 0.4% increase. This brings year-over-year Core CPI to 5.5% – unchanged compared to April last year.
Like CPI, Core CPI also tracks the price of goods and services but differs by way of excluding food and energy prices – which are said to be too volatile to include. Central banks use Core CPI, not CPI, to inform policy.
Meanwhile, throughout this period of uncertainty, Bitcoin has held firm – even showing fleeting signs of safe haven qualities during the banking crisis.
For now, it’s all eyes on June 14 as the market awaits the Fed’s assessment – with many holding out for a pause, which could lead to a pivot.
Author 
Samuel Wan
Samuel Wan, a finance professional turned full-time crypto content creator, values individual autonomy and personal freedom in his pursuits.
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