Bitcoin surpassed $64,000 on May 15, coinciding with U.S. core inflation reaching its lowest level in three years. Data from Cointelegraph Markets Pro and TradingView recorded local highs of $64,700 for BTC/USD after the Wall Street opening. This surge in Bitcoin's value was influenced by the latest U.S. Consumer Price Index (CPI) report, which exceeded expectations, favoring risk assets and driving the S&P 500 and Nasdaq Composite Index to record highs.

The CPI for April showed a month-on-month increase of 0.3%, slightly below the anticipated 0.4%, while other figures matched predictions. This resulted in core inflation dropping to its lowest point since 2021, potentially supporting arguments for future interest rate cuts. Despite this, reactions were mixed, with some market analysts remaining cautious.

The trading resource The Kobeissi Letter noted that while CPI inflation decreased for the first time in three months, the Producer Price Index (PPI) data from the previous day indicated a third consecutive monthly increase. This conflicting data led to a cautious stance from the Federal Reserve, with Chairman Jerome Powell adopting a dovish tone, describing the PPI data as "mixed" rather than definitively positive.

Market expectations for imminent interest rate cuts remained largely unchanged, with only 3.1% of market participants anticipating a rate cut in June and 28.3% in July, according to CME Group’s FedWatch Tool. This suggests that while inflation data was favorable, it wasn't enough to significantly alter market predictions regarding monetary policy adjustments in the near term.

As for Bitcoin, the reaction to the CPI data significantly shifted the landscape on exchange order books. Monitoring resource CoinGlass highlighted that Bitcoin's price was advancing through liquidity barriers, forming new support blocks around $65,000. Popular trader Skew emphasized the importance of spot buyers maintaining momentum to reclaim the 200-period exponential moving average as support on four-hour timeframes, which was at $63,195. Skew noted that Bitcoin needs to surpass $65,000 to restore market confidence fully.