Breaking: Bitcoin Price Advances As US CPI Inflation Cools

The most awaited U.S. Consumer Price Index (CPI) data today showed that the U.S. inflation remained unchanged at 0.3% in May, more than the market estimates. Notably, market watchers were eagerly waiting for this crucial inflation data for cues on the current economic health and potential stance of the U.S. Federal Reserve with their policy rate plans.

So, let’s take a look at the current U.S. CPI inflation data in detail and see how it may impact the Bitcoin price as well as the broader crypto market.

U.S. CPI Inflation Cools Sparking Market Optimism

According to recent data by the U.S. Bureau Of Labor Statistics, the U.S. CPI remains unchanged at 0.3% in May. However, the market was anticipating the inflation to cool at 0.1% for the month. Despite the surge, on a yearly basis, the CPI inflation cooled to 3.3% in May from 3.4% in the preceding month.

Meanwhile, the Core CPI data, which excludes the food and energy prices, cools to 0.2% in May from 0.3% in the prior month. Simultaneously, the Core CPI figure on a yearly basis showed that the inflation has cooled to 3.4% from 3.6% in April. Notably, both the figures show a cooling inflation, sparking market optimism.

The cooling inflation data appears to have boosted the market sentiment, especially after last week’s robust U.S. Job data has impacted the risk-bet appetite of investors. Now, given the easing U.S. CPI inflation data, the crypto market will be keeping a close track of the FOMC interest rate decision scheduled for later today, followed by Fed Chair Jerome Powell’s press conference.

Also Read: Why Altcoins’ Prices Are Falling & When Will They Recover?

Bitcoin Price Rallies

The cooling U.S. CPI inflation figure has bolstered investors’ sentiment, as evidenced by the rally in the cryptocurrency market as well as in the Bitcoin price. Now, given the bullish data, the market anticipates a dovish stance by the Federal Reserve with its interest rate plans.

Meanwhile, earlier today, 10X Research’s Markus Thielen predicted that if the U.S. CPI cools to 3.3%, then BTC could witness a surge of over 4%. Having said that, the market anticipates a bullish momentum for Bitcoin price, as well as for the altcoins sector. Notably, following the CPI release, the U.S. 10-year Bond Yield fell 2.81% to 4.278, while the U.S. Dollar Index Futures slipped 0.97% to $104.175.

After witnessing a sluggish performance this week, Bitcoin price rallied 3.60% today following the inflation data and exchanged hands at $69,411.30. Notably, over the last 24 hours, the BTC price has touched a low of $66,123.60. Simultaneously, over the last four hours, the Bitcoin Futures Open Interest also rose 2.29% to 523.38K BTC or $36.37 billion, CoinGlass data showed.

On the other hand, the altcoins sector has also noted a strong recovery. Ethereum price rose nearly 3% today to $3,637.36, while Solana price rose about 4% to $158.43.

Now, the market will be closely watching the FOMC decision and the Fed Chair’s comment later today. In addition, the U.S. PPI inflation data, scheduled for tomorrow, will also play an important role in deciding the potential future movement of the market.

Also Read:

• Zimbabwe Joins Global Race With New Push Towards Crypto Regulations
• Spot Bitcoin ETF To See Majority Inflows Linked To Arbitrage, Here’s Why
• Chainalysis Bags Dismissal In $80M Employment Contract Breach Lawsuit