67K Touch in a Month... US Inflation Slowdown and Hedge Fund Bets [Bitcoin Now]

Early Morning of the 18th, Bitcoin Recovers to $67,000 During Trading
First Monthly Rise in a Month... Positive US April CPI
US Hedge Funds Also Make Large-Scale Bitcoin Bets

The US Consumer Price Index (CPI) for April came in below market expectations, easing concerns and leading to a rise in the virtual asset market. With the likelihood of a Federal Reserve (Fed) interest rate cut in September increasing, news of large-scale bets by US hedge funds acted as a positive catalyst. Bitcoin prices also touched the $67,000 mark again in the early hours of the 18th, nearly a month after last reaching that level.

According to the global virtual asset market tracking site CoinMarketCap, as of 9:42 AM KST on the 18th, Bitcoin was trading at $66,803.40, up 2.32% from the previous day. Compared to a week ago, it rose 10.01%, and compared to a month ago, it increased by 9.02%. Year-over-year, it has recorded a gain of 143.78%.

Bitcoin prices started in the low $60,000 range on the 12th and gradually rebounded before surging on the 16th to quickly surpass the $65,000 level. The upward momentum continued, and in the early hours of the 18th, it briefly touched $67,000. This was the first time since April 24, nearly a month ago. Although some of the gains were later given back, the price remains in an upward trend.

The sharp price increase is interpreted as a result of growing relief over signals of slowing inflation. On the 15th (local time), the US Department of Labor announced that the April CPI rose 3.4% year-over-year. This matched market expectations and was slightly lower than March’s 3.5%. The core CPI, which excludes volatile energy and food prices, also rose 0.3% month-over-month and 3.6% year-over-year, in line with market forecasts. This marks the first time this year that the inflation rate has eased.

On the previous day, April 14 (local time), Fed Chair Jerome Powell hinted at holding interest rates steady, and the April CPI release fueled expectations of a rate cut. In a discussion hosted by the Dutch Foreign Banks Association, Powell said that while inflation is slowing more slowly than expected, "the likelihood that our next move will be a rate hike is low."

The revelation that institutional investors have made large-scale investments in Bitcoin also influenced market sentiment. According to foreign media on the 16th (local time), New York-based Millennium Management held approximately $2 billion worth of Bitcoin spot Exchange-Traded Funds (ETFs) in the first quarter. According to a report as of March 31, Millennium held $1.94 billion in Bitcoin spot ETFs, diversified across five different holdings.

Cryptocurrency specialist CoinDesk noted, "This week, as US inflation eased and hedge funds like Millennium Management showed significant interest in Bitcoin ETFs, the sentiment within the virtual asset market quickly reversed."

According to virtual asset data provider Alternative, the Fear & Greed Index, which measures investor sentiment, stood at 73 points (Greed) on the day. Last week, it was 53 points (Neutral). Alternative’s Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating strong optimism.