Investing.com– The price of bitcoin rose on Thursday, benefiting from a weaker dollar following relatively lower consumer inflation readings in April, although the token remained comfortably range-bound as sentiment toward cryptocurrencies remained being moderate.
The price rose 6.4% in the last 24 hours to $65,844 at 01:21 CET (05:21 GMT). The token had reached as high as $66,600, before losing some momentum.
Bitcoin Price Buoyed by Dollar Weakness Following CPI Data
Bitcoin rebounded on Wednesday after sinking as low as $60,000 earlier this week.
The rally was largely driven by a decline in the index, which hit one-month lows after some softer consumer price index readings in April.
grew at a slower rate than expected, although it eased as expected.
The readings, which were accompanied by weaker-than-expected data, raised some hopes that inflation will ease in the coming months and give the Federal Reserve more confidence to begin cutting interest rates.
But inflation still remained well above the central bank's 2% annual target range. Several Fed officials have also warned in recent weeks that the bank will need much more confidence to begin cutting rates.
This notion capped any major gains in Bitcoin, keeping the token's trading comfortably within a $60,000 to $70,000 trading range established over the past two months. The increased appetite for risk, which was reflected in Wall Street reaching record levels, also did not extend to cryptocurrencies.
The prospect of regulatory hurdles bodes poorly for cryptocurrency markets, especially as recent reports suggested that the Securities and Exchange Commission was moving more regulatory action against the sector.
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Bitcoin's range-bound performance also comes as capital flows and trading activity in spot exchange-traded funds, which were a key driver of its March rally, have largely stalled in recent weeks.
Cryptocurrency price today: Altcoins recover but struggle to advance
Major altcoins also posted strong gains on Thursday, although a large portion of the tokens remained well below the highs reached in March, when they took advantage of Bitcoin's rally.
The world's No. 2 token rose 3.4% and added 3.6%.
outperformed, rising 12.3% to hit a more than one-month high. But the token also remained well below its 2024 peaks.
