Investing.com– Bitcoin’s price rose on Thursday, benefiting from a weaker dollar after several relatively weaker consumer inflation readings for April, although the token remained in a moderate trading range as cryptocurrency sentiment remained subdued.

The price rose 6.4% in the last 24 hours to $65,844 by 01:21 ET (05:21 GMT). The token reached $66,600 and then lost momentum.

Bitcoin price was strengthened by a weaker dollar after CPI data

Bitcoin rebounded on Wednesday after falling to the $60,000 level earlier in the week.

The rebound was largely driven by a decline in the index, which hit a one-month low after several weaker readings on the consumer price index for April.

grew at a slower than expected rate, yet declined as expected.

The readings, which were accompanied by weaker-than-expected data, raised hopes of lower inflation in the coming months and gave the Federal Reserve confidence to begin cutting interest rates.

However, inflation remained well above the central bank’s annual target range of 2%. Many Fed officials have also warned in recent weeks that the bank would need much more confidence to begin cutting interest rates.

This concept has capped any major gains in Bitcoin, keeping the token trading within the comfortable $60,000 to $70,000 range established over the past two months. The increased risk appetite that was reflected in Wall Street’s record highs also did not translate into cryptocurrencies.

The prospect of regulatory difficulties bodes ill for cryptocurrency markets, especially as recent reports have suggested the Securities and Exchange Commission is mobilizing more regulatory action against the sector.

Bitcoin’s forceful performance is also due to the fact that capital flows and trading activity in spot funds, which were a key factor in March’s rally, have stagnated significantly in recent weeks.

Cryptocurrency Price Today: Altcoins Are Growing, But Are Having a Difficult Progress

Major altcoins also posted acute gains on Thursday, although most tokens remained well below the highs they reached in March, when they supported Bitcoin’s rally.

The world’s No. 2 token rose 3.4%, while it rose 3.6%.

outperformed, rising 12.3% to its highest level in over a month. However, the token also remained well below its 2024 highs.