Bitcoin price recovers above $71,000 despite rising US inflation

Bitcoin prices rose back above the $71,000 (£56,506) mark on Thursday, even as stock markets closed lower following a disappointing US inflation report.

Read more: Crypto Live Prices

The world's largest digital asset by market cap (BTC-USD) rose over 2% in the past 24 hours, hitting a daily high of over $71,200. The uptrend followed a decline in early trading on Wednesday that saw Bitcoin hit a daily low of around $68,000.

Read more: Bitcoin ETFs ready for inflows into US pension plans, says Standard Chartered analyst

US stocks close lower after hot CPI reading

Major U.S. stock indexes closed lower after U.S. consumer prices came in higher than expected in March, according to the latest data from the Bureau of Labor Statistics.

The U.S. Consumer Price Index rose 0.4% month-on-month and 3.5% year-on-year through March, accelerating from the 3.2% annual price increase in February. The data matched the month-on-month increase in February.

The hot numbers complicate the next interest rate move by the US Federal Reserve, which is working to reduce inflation back to the target of two percent.

In premarket trading on Thursday, the S&P futures and Dow futures both fell 0.038%. Bitcoin tends to march in lockstep with major stock indices, but has deviated from that pattern over the past 24 hours.

The upcoming Bitcoin halving

Bitcoin is facing an event that could act as a major price catalyst. Analysts agree that the upcoming “Bitcoin halving” could continue to drive inflows into the Bitcoin market. This event is expected to take place on or around Saturday, April 20th.

Read more: Bitcoin price volatile as supply shortage threatens

The Bitcoin price halving is an event that occurs approximately every four years. The halving reduces the reward that miners receive for validating blocks on the blockchain from the current 6.25 BTC to 3.125 BTC. This could lead to a supply shortage for the digital asset and potentially cause a price increase.

Watch: How cryptocurrencies' faster payment systems are impacting traditional finance | Future Focus

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