Cooling U.S. Inflation Outlook Lifts Bitcoin to Best Week Since March

The US consumer price index is a key gauge used by the Federal Reserve in setting interest-rate policy. Core CPI, which excludes volatile food and energy prices, offers a clearer view of underlying price pressures. Weaker-than-expected core inflation typically supports risk assets such as Bitcoin because rising expectations of rate cuts can improve liquidity and investor appetite.

The latest data showed that higher energy prices lifted headline US inflation, while core inflation slowed, prompting a short-term rebound in crypto markets. Bitcoin recovered to about $62,600 and held up better over the week than other tokens. Investors will next focus on the Federal Reserve’s interest-rate meeting and Chair Jerome Powell’s comments on the timing of rate cuts.

Bitcoin is highly sensitive to expectations for U.S. interest rates and liquidity, while Federal Reserve rate decisions often drive crypto-asset valuations. Markets are now focused on how Chair Jerome Powell will assess changes in inflation and oil prices. His remarks could shape expectations for rate cuts and determine whether capital continues flowing into risk assets.

Bitcoin briefly touched $76,000 ahead of the Federal Open Market Committee's April 29 decision before retreating to around $74,000, including a short-lived intraday drop below $75,000. Ether, meanwhile, approached $2,200. Traders turned cautious and watched for signs of a hawkish tilt in Powell's post-meeting comments.