Since March, Bitcoin has had its best day.

On Wednesday, the consumer price index for April showed a decrease in inflation from the previous month, causing the stock market to jump.

The cryptocurrency reached its highest price of $64,910.57, a 5% increase, according to Coin Metrics, and is on track for its best day since March 25. Bitcoin surpassed its 50-day moving average for the first time since April 13, but has since fallen below that level.

"Owen Lau, an analyst at Oppenheimer, stated that the slightly lighter than expected CPI number increased the chance of a rate cut, which is a strong influencer on bitcoin price. After the ETFs and halving, the next major catalyst is a rate cut. Bitcoin is likely to remain rangebound and trade along with macro data points until we see a clearer path for rate cut."

The consumer price index, a comprehensive indicator of the cost of goods and services at the point of sale, rose 0.3% from March, according to the Labor Department's Bureau of Labor Statistics. This was slightly below the Dow Jones forecast of 0.4%. Despite this, consumer prices are still up 3.4% compared to the same period last year.

As the U.S. core CPI cools down for the first time in six months, investors may be more inclined to take on risk with assets like crypto, potentially leading to increased flows into bitcoin spot ETFs, which have been relatively quiet in recent days, according to Leena ElDeeb, an analyst at 21Shares.

"Despite the uncertainty surrounding rate cuts, recovery may be sluggish," she stated. "Historically, higher interest rates decrease the appeal of risky investments like tech stocks and bitcoin, as investors can earn significant returns from safer options such as U.S. Treasurys."

Bitcoin is both a risk-on and risk-off asset, and many investors view it as a long-term investment, according to ElDeeb. Although Fed policies may cause short-term bitcoin volatility, they do not alter its long-term trajectory.

Recently, macro factors have had a greater impact on bitcoin, with catalysts such as the launch of bitcoin ETFs and the halving occurring in the past. This week, bitcoin did not participate in a two-day resurgence of the meme stock craze.

Bitcoin has experienced a 7% increase with Wednesday's gain, making it its best week since March 29, and is currently on track to end a six-week decline.

Since March, Bitcoin has been fluctuating between $60,000 and $70,000, with only minor fluctuations above and below that range. It is predicted by investors and analysts that the cryptocurrency will remain rangebound for an extended period of time without any significant catalysts.

—CNBC's Jeff Cox and Nick Wells contributed reporting.