Bitcoin Price and Those Altcoins Jumped: Here's the Reason for the Rise!

Crypto money market witnessed a significant increase on Wednesday, May 15, following the release of the latest US inflation data. Bitcoin (BTC) has emerged as a star player, surpassing the $66,000 mark for the first time since April 24. In just 24 hours, it recorded a remarkable 7% increase. This rise trend is attributed to a combination of factors, the most prominent of which is the U.S. Consumer Price Index (CPI) data.

Bitcoin price rises on low inflation data

As we reported in Kriptokoin.com, the CPI report revealed a pleasant surprise: core inflation fell to a 3-year low of 3.4%. This positive development has triggered increased activity in the Bitcoin market and has attracted a lot of interest, especially from major global banks. This correlation between low inflation and increased investment in crypto assets points to a potential shift in investor sentiment. Bitcoin can increasingly be seen as a hedge against economic uncertainty, offering a store of value that is not as inflation-sensitive as traditional assets.

In addition, positive inflation figures signal the possibility of an imminent interest rate cut in the US. While the Fed maintains its cautious wait-and-see approach, recent data may prompt them to accelerate their timelines. However, some concerns remain about the fall pace of inflation, limiting the scope of possible rate cuts later this year.

Institutional investor interest is growing

Another major factor behind Bitcoin's price increase is the growing institutional interest, especially in Bitcoin Exchange Traded Funds (ETF s). Recent filings to Securities and Exchange Commission (SEC) have revealed that leading banks such as JPMorgan, Wells Fargo, UBS, and Bank of Montreal have made significant investments in their Bitcoin ETF. These statements played an important role in supporting Bitcoin's market capitalization.

Further boosting the market's momentum are investments from organizations such as the State Board of Investments of the State of Wisconsin, which recently allocated $99 million to BlackRock's Spot Bitcoin ETF. The ETF market is brimming with anticipation as more institutions are expected to join the game. Particularly noteworthy is the recent appointment of Salim Ramji, the former head of global ETF at BlackRock, as Vanguard's CEO. Vanguard, which has previously taken a negative stance on its spot Bitcoin ETF, may reconsider its position under Ramji's leadership, potentially leading to an even greater influx of corporate influence.

Some altcoins also joined the party

The positive sentiment surrounding the Crypto market was not limited to Bitcoin. Memecoins, which have recently faced a sharp correction along with other crypto assets, have also experienced a significant rally. The fact that the US inflation data came in below expectations with a monthly rate of 0.3% played an important role in this revival. Falling rates often lead to increased risk appetite for investors, encouraging them to allocate funds to riskier assets such as memecoins.

The memecoin's market capitalization witnessed an 8.8% increase, while their Solana memecoin maintained their lead with an 11.8% gain. Dog-themed tokens such as the ever-popular Shiba Inu and Dogecoin (DOGE) also experienced a healthy rise of 6-7%. In addition, Floki (FLOKI) and Pepe (PEPE) increased by 10 percent and 6 percent, respectively. Arweave (AR) and Wormhole (W) are also among the top 100 rising coins by market capitalization.

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