Bitcoin and Stocks React to Positive Inflation Data

Bitcoin and Ether prices rose slightly after the April consumer price index report showed that the inflation rate eased on an annual basis to 4.9%, slightly less than what economists expected. Investors grew optimistic as lower inflation supports the case for the end of rate hikes, which started the crypto winter over a year ago. Bitcoin's correlation with the S&P 500 has fallen this year, while its correlation with gold has increased. The crypto market has also been affected by the regional banking crisis, regulatory crackdown in the U.S., and the recent attention on Ordinals and memecoins.