Bitcoin Surges 9% on Soft U.S. CPI and Exchange Outflows

Bitcoin's price surged more than 9 percent over the past week, climbing from 66,900 on April 3 to around 73,000 by April 10, buoyed by softer-than-expected U.S. inflation data and accelerating outflows from cryptocurrency exchanges. The cryptocurrency reclaimed the 70,000 level earlier in the week and held gains amid reduced selling pressure and building short positions in derivatives markets.

The rally accelerated on April 10 following the release of March Consumer Price Index figures from the Bureau of Labor Statistics. Core CPI, which excludes food and energy, rose 0.2 percent month-over-month, below the 0.3 percent forecast by economists. Headline CPI increased 0.9 percent, in line with expectations but driven largely by a 10.9 percent jump in energy costs tied to the ongoing Middle East conflict. Year-over-year, headline inflation stood at 3.3 percent, while core reached 2.6 percent, slightly under the anticipated 2.7 percent. Bitcoin briefly touched 72,400 within minutes of the 8:30 a.m. ET report before retreating to near 72,000, reflecting a measured response from traders.

On-chain data highlighted tightening supply on exchanges, which analysts say limits immediate...