Bitcoin price surged above $104K as April's CPI cooled to 2.3%, the lowest annual inflation rate since 2021, fueling bullish sentiment and renewed Fed rate-cut expectations.
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Bitcoin Rises Above $104K as Inflation Cools
Key data points:
- April CPI: 2.3% YoY (vs. 2.4% forecast)
- BTC spot volume: +35% on Binance’s BTC/USDT pair
- Coinbase (COIN): +5.3% in pre-market trading
The softer inflation print reinforced market bets on imminent Fed policy easing, driving capital into risk assets like Bitcoin. Derivatives markets echoed this optimism:
- Futures OI: $68.57B (+2.38%)
- Options OI: $39.89B (+2.50%)
$68.6B BTC Open Interest Reinforces Bullish Dominance
Derivatives metrics highlight institutional conviction:
| Metric | Value | Change |
|----------------------|-------------|---------|
| Top Trader L/S Ratio | 1.595 | ↑ |
| Short Liquidations | $28.27M | 81% in 1H |
Liquidation patterns confirm abrupt market repositioning post-CPI, with leveraged shorts bearing the brunt.
Technical Outlook: Path to $110K
Indicators supporting upside:
- Bollinger Bands: Expansion signals volatility ($108.4K upper band)
- RSI: 72.52 (elevated but not divergent)
- Volume Delta: +1.27K (strongest buyer dominance since May)
Critical supports:
- $100K: Psychological level + mid-Bollinger Band
- **$92.85K**: Fallback if $100K breaks
FAQs
Why did Bitcoin jump after the CPI report?
Lower inflation (2.3%) boosted rate-cut odds, reducing Treasury yields and lifting crypto demand.
How does Fed policy impact BTC?
Easing monetary policy weakens the dollar, making scarce assets like Bitcoin more attractive.
What’s Bitcoin’s next price target?
$110K, supported by technicals, spot inflows, and bullish derivatives positioning.