Bitcoin (BTC) reached a new high when trading at US$66,400 this Wednesday. This appreciation occurred shortly after the release of the Consumer Price Index (CPI) data for April, which indicated a relief in inflationary pressures.

According to the US Bureau of Labor Statistics, April’s CPI registered a 3.4% increase compared to the previous year, a drop from the 3.5% seen in March. More significantly, the core CPI, which excludes volatile food and energy prices, also showed a reduction, falling from 3.8% to 3.6%. These data were in line with market expectations and reinforce the perception of more effective inflation control.

This milder inflationary scenario reduced expectations that the Federal Reserve would maintain a more aggressive stance for longer. “The reading provided some relief after previous CPI reports suggested more persistent inflation, which dampened expectations of an early interest rate cut from the Federal Reserve,” as previously cited.

With inflation appearing to retreat, optimism is reflected in market bets, where there is now a 75% probability of a cut in interest rates as early as September, as indicated by the CME FedWatch tool.

The effect of this favorable outlook was not limited to Bitcoin. The flagship cryptocurrency has seen a nearly 7% increase in value over the past 24 hours, briefly surpassing the $63,000 mark immediately after the release of inflation data.