Bitcoin’s price topped US$65,000 following the release of the April Consumer Price Index (CPI) in the United States, which showed a year-over-year increase of 3.4%, signaling a slight decrease in inflation.
Ethereum also rose to over US$3,000, according to CoinGecko data.
The latest inflation data also led to a positive reaction in the stock market, with U.S. equity futures rising and a possible reassessment of the Federal Reserve’s interest rate plans.
Interest rate traders are now adjusting their expectations, with the CME’s FedWatch tool indicating a 91.6% probability that the Fed will maintain rates in June and a 65.1% chance in July.
The odds of a rate cut in September have increased to 51.4%.
This shift in market sentiment follows a period of higher-than-expected inflation readings, which had previously dampened hopes for rate cuts.
Pepe, the memecoin that recently led the market rally alongside the resurgence of meme stocks and GameStop, declined by 1.8% over the past 24 hours to 3 p.m. ET, slowing its momentum on.
But it still leads all cryptocurrencies in the top 100 in weekly gains with 27%, CoinGecko data shows.