ChatGPT4o forecasts Bitcoin price as US CPI inflation decreases
Bitcoin’s price surged by $1,500 in a matter of seconds following the release of the May Consumer Price Index (CPI) data, which showed that inflation was cooling faster than anticipated.
The highly anticipated U.S. CPI data for May indicated that inflation remained steady at 0.3%, exceeding market expectations. This data was eagerly awaited by market analysts for insights into the current economic conditions and the possible actions of the U.S. Federal Reserve regarding interest rates.
The positive inflation figures significantly boosted market sentiment, leading to a surge in Bitcoin and other cryptocurrencies. Following the release of the CPI data, Bitcoin shot up by 3.60% to reach $69,411.30. Ethereum and Solana also experienced substantial gains of around 3% and 4% respectively, highlighting the importance of inflation data in shaping investor sentiments and market dynamics.
As traders and investors eagerly await the upcoming Federal Open Market Committee (FOMC) meeting, Finbold provided technical analysis and market projections to ChatGPT-4o for a one-month Bitcoin price prediction. Based on the cooling CPI data, ChatGPT-4o predicts a favorable environment for Bitcoin. If the FOMC maintains current interest rates, Bitcoin is expected to trade between $70,000 and $73,000. However, in the less likely scenario of a rate cut, Bitcoin could see even higher gains, trading between $73,000 and $75,000.
Despite a slow start earlier in the week, Bitcoin rallied by 3.60% today, reaching a price just above $69,000. Within the past 24 hours, Bitcoin’s price dropped to a low of $66,123.60, while Bitcoin Futures Open Interest increased by 2.29% in the last four hours, according to data from CoinGlass.
Investors and traders are advised to exercise caution this week as analysts expect 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 play crucial roles in determining Bitcoin’s short-term trajectory.
Disclaimer: The information provided in this article should not be considered as investment advice. Investing carries risks, and capital is at risk when investing.
