ChatGPT4o predicts Bitcoin price as US CPI inflation cools
Bitcoin saw a rapid increase of $1,500 in just a few seconds after the May Consumer Price Index (CPI) data indicated that inflation was not rising as fast as anticipated.
The eagerly awaited U.S. CPI report for May showed that inflation remained steady at 0.3%, exceeding market expectations. Market analysts were eagerly looking forward to this data to gain insights into the current economic conditions and the potential actions of the U.S. Federal Reserve regarding interest rates.
Following the release of the CPI data, market sentiment significantly improved, leading to a surge in the prices of Bitcoin and other cryptocurrencies. Bitcoin surged by 3.60%, reaching $69,411.30, while Ethereum and Solana also experienced significant gains.
The positive market response highlights the importance of inflation data in shaping investor expectations and market dynamics. With the upcoming Federal Open Market Committee (FOMC) meeting in focus, traders are closely monitoring potential interest rate decisions.
Based on the cooling CPI data and its impact on market sentiment, ChatGPT-4o predicts a favorable environment for Bitcoin. If the FOMC decides to keep rates unchanged, Bitcoin is expected to trade between $70,000 and $73,000. However, in the unlikely event of a rate cut, Bitcoin could see even higher gains, trading between $73,000 and $75,000.
After a slow start earlier in the week, Bitcoin experienced a notable rally of 3.60% today, reaching a price just above $69,000. The cryptocurrency’s price dipped to $66,123.60 within the past 24 hours, but Bitcoin Futures Open Interest increased by 2.29% according to CoinGlass data.
Investors and traders should remain cautious this week due to expected high volatility in the market. While the cooling CPI data has brought optimism to the cryptocurrency market, the upcoming FOMC meeting and Producer Price Index (PPI) data release will be crucial in determining Bitcoin’s short-term trajectory.
Please note that the information provided in this article should not be considered as investment advice, as investing in cryptocurrencies carries risks and is speculative in nature.