Following dismal CPI data, major U.S. equity indices ended the day lower, whereas Bitcoin saw a 1% increase.
Wednesday saw a return of Bitcoin (BTC) to $70,000, reversing its sharp decline that had followed hotter-than-expected U.S. inflation figures for March.
After a government study revealed that the Consumer Price Index (CPI) was rising faster than analyst expectations, investors tempered their hopes for rate cuts this year, and Bitcoin fell roughly 4% to $67,500 during early U.S. hours.
A number of asset classes saw a decrease, but bitcoin steadily recovered all of its losses and was up more than 1% in the last day, surpassing gold and US equities, which both ended the day with significant losses. At the time of writing, bitcoin was trading at $69,800, having slightly dropped from the $70,000 mark.
The majority of cryptocurrencies trailed behind Bitcoin, with the broad-market CoinDesk 20 Index down 0.6% over the same time frame. This decrease was primarily caused by big altcoins such as polkadot (DOT), bitcoin cash (BCH), near (NEAR), and aptos (APT), which fell by 5% to 7%.
The U.S. Securities and Exchange Commission's enforcement letter against the decentralized exchange Uniswap caused its governance token (UNI) to plunge more than 10%, portending regulatory action against the platform.
The recovery, according to digital asset hedge company QCP Capital, demonstrated the underlying demand for bitcoin, with investors viewing declines as a chance to purchase.
In a Telegram update, QCP stated, "This bounce is not surprising as the desk continues to see strong demand for long-dated BTC calls even on this dip." "It is indicative of deep structural bullishness in BTC."
In an X post, Reflexivity Research co-founder Will Clemente pointed out that the ever-rising levels of U.S. debt are more significant for the overall picture than any one CPI reading, and that the most likely scenario is that policymakers will allow inflation to exceed the 2% target in order to contribute to the debt's inflation. "Bitcoin serves as insurance against this," Clemente continued.
