📈 Bitcoin's Resurgence: A Response to Cooling U.S. Inflation

📊 #Bitcoin experienced a significant rebound on Friday, rising to $69,000 after U.S. inflation #data showed a cooler-than-expected rate of 2.4%. This marked a 5% increase in less than 24 hours, adding approximately $70 billion to its market capitalization and elevating the overall #crypto market to $2.42 trillion. The catalyst for the broad-based rally was the Consumer Price Index (CPI), which fell to 2.4%, edging out the 2.5% projected by analysts. 📉 Prior to this surge, #Bitcoin had faced pressure, dipping below $66,000 for two consecutive sessions. It rebounded from an intraday low of $65,670 to reach a high of $69,405. The CPI's disinflationary signal positively impacted the digital asset economy, with most #major tokens gaining between 2% and 5% and #Bitcoin Cash (BCH) leading the way with an 8% jump. 💼 This cooling inflation supports U.S. President Donald Trump's calls for aggressive interest rate cuts, putting pressure on the Federal Reserve and Chairman Jerome Powell. The #data also challenge the belief that the administration's tariffs would lead to an inflationary spike. 📉 U.S. equities mirrored the #crypto market's enthusiasm, with the Nasdaq reaching an intraday high before a mid-session reversal. The S&P 500 and Dow Jones Industrial Average also saw gains, although the Dow remains on track to finish the week lower than its Tuesday peak. Despite this relief rally, broader market sentiment remains remarkably fragile. ⚠️ The sudden volatility caught bears off guard, leading to over $170 million in short-position liquidations within 4 hours. #Bitcoin led these liquidations with $92 million wiped out, followed by ether at $48 million. Despite the recent gains, the #Crypto Fear and Greed Index indicates extreme caution among investors, sitting at 8 within the "extreme fear" zone. #CryptoRecovery
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