Bitcoin witnessed a robust rally on Wednesday, mirroring the upward trajectory of major equities, following the release of subdued U.S. Consumer Price Index (CPI) data for April.

The April CPI data, unveiled by the U.S. Bureau of Labor Statistics, revealed a year-over-year increase of 3.4%, marginally lower than March's 3.5% uptick.

The bitcoin price surged by 3% over the past 24 hours, reaching $63,751 as of 9:20 a.m. ET, according to The Block's Price Page.

Buoyed by the CPI report indicating a moderation in inflation in line with economists' projections, stock futures climbed significantly. The Nasdaq Composite ascended by 0.81%, while the NYSE Composite saw a 0.48% increase in pre-market trading.

Amidst the broader market reaction to the CPI report, which points to a slowdown in April's inflationary pressures, attention turns to the Federal Reserve's stance on potential rate adjustments. This development may embolden the Fed's inclination towards initiating rate cuts, particularly following a string of inflation readings surpassing expectations, which had tempered expectations for rate adjustments this year.

According to the CME's FedWatch tool, interest rate traders are hedging their bets, forecasting that the Fed will maintain rates at current levels in June before contemplating a potential cut in September. The likelihood of rates remaining unchanged in June stands at 91.6%, with a slightly reduced probability of 65.1% in July. However, interest rate traders assign a 51.4% probability of a rate cut materializing in September.

In tandem with Bitcoin's surge, the GM 30 Index, representing a basket of the top 30 cryptocurrencies, recorded a notable uptick of 1.92%, reaching a value of 130.16 over the past 24 hours.

As markets digest the implications of April's inflation data and the ensuing speculation surrounding potential Fed actions, investors remain attuned to evolving economic indicators and policy shifts that could shape market sentiment in the coming months.