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HONG KONG — Bitcoin gained ground after the latest US consumer price index reading came in at its lowest level in two years, a data point the market read as easing pressure on the Federal Reserve and, by extension, as a tailwind for risk assets including crypto.
The advance came on the same day the European Central Bank raised interest rates, a move that investors appeared to absorb without flinching.
The Macro Driver: Cooling US Inflation The CPI print mattered because the Fed's rate path is arguably the single most important macro variable for Bitcoin right now.
When inflation cools, the argument runs that the Fed has less reason to keep tightening — and tighter monetary conditions have historically weighed on assets at the speculative end of the risk spectrum.
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