- CPI remained steady month-on-month and came in at 3.3% year-on-year.
- Following today’s inflation figures, Bitcoin’s price surged more than 5%.
Following a surprising dip in US inflation numbers, the crypto market rebounded. As the Consumer Price Index (CPI) for May revealed inflation cooling quicker than anticipated, Bitcoin surged over 5%. CPI remained steady month-on-month and came in at 3.3% year-on-year, both of which were 0.1% lower than expected.
U.S. Bureau of Labor Statistics official release stated:
“The all items index rose 3.3 percent for the 12 months ending May, a smaller increase than the 3.4-percent increase for the 12 months ending April. The all items less food and energy index rose 3.4 percent over the last 12 months.”
All Eyes on Fed
The outcome was a windfall for risk assets, such as cryptocurrency, which had seen its now-classic downturn in value recently before CPI. Later in the day, the Federal Open Market Committee (FOMC) is scheduled to convene, and the markets are preparing for it.
Interest rate decisions and comments on the economy from Federal Reserve Chair Jerome Powell will have a significant impact on investor sentiment. In light of recent developments, analysts have speculated that Powell has been granted permission to consider a loosening of strict financial policy.
Meanwhile, market forecasts on when rate cuts may happen have been moving, according to the latest estimates from CME Group’s FedWatch Tool. The September FOMC meeting is currently with odds of above 70%.
Following today’s inflation figures, Bitcoin’s price surged more than 5% after a terrible run this week. According to statistics from CMC, Bitcoin was trading at $69,774 at the time of writing.
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