Bitcoin rose on Tuesday morning, surpassing its key psychological level of $30,000 as investors looked toward the U.S. inflation data on Wednesday, while the rate hikes that are expected to come to an end soon.
The world’s largest cryptocurrency rose as high as $30,433 for the first time since June last year, according to Refinitiv.
Cryptocurrencies have been rallying this year with Bitcoin gaining more than 80%, while Ether rose 60% year-to-date.
According to the CME FedWatch Tool, 71% of the market expects the U.S. Federal Reserve to raise its final rate hike in May by 25 basis points, bringing its policy rates to 5.00-5.25%. The current odds in June are leaning toward a pause, while some are speculating for a cut as early as July.
Meanwhile, the Dollar Index which measures the value of the U.S. greenback against the basket of top 6 currencies ticked down slightly by 0.2% today.
The policy outlook will likely be decided by the upcoming U.S. inflation data on Wednesday with inflation for March expecting to ease to 5.2% from 6.0% in February.