Bitcoin Reacts As US CPI Data Comes In At 2.7%

Bitcoin is facing intense volatility following the release of the US CPI data for June. The yearly CPI data came in higher than expectations, which has raised concerns about how it could further delay a Fed rate cut.

Bitcoin Records Massive Volatility Following CPI Data Release

CoinMarketCap data showed that the BTC price quickly rebounded above $117,000 on the back of the CPI data release, before then dropping to as low as $116,000 after a while. This development came amid the flagship’s loss of about 4% on the day, having crashed from as high as $123,000, recorded the previous day.

According to U.S. Bureau of Labor data, the yearly U.S. CPI came in at 2.7%, slightly higher than the anticipated 2.6%. However, the monthly data came in at 0.3%, in line with expectations, representing the only positive for Bitcoin.

The US CPI data of 2.7% is the highest level recorded since February 2025 and is significantly higher than the 2.4% recorded in May. Experts say the release of new economic data is keeping the markets on edge, as cryptocurrency prices fluctuate within minutes of the announcement.

This volatility comes on the heels of a record-breaking week that saw Bitcoin set new ATHs. BTC had surged to as high as $123,000 on July 14 but has since crashed from these highs.

What The CPI Data Means For The Market

Ahead of the release of the CPI and PPI data, The Kobeissi Letter warned investors of a “big selloff” if the data comes in hot, citing inflationary concerns stemming from Trump’s tariffs.

“US June CPI just came in at 2.7% year-over-year – a touch hotter than the 2.6% estimate,” said the pseudonymous Kyledoops. “Not a massive miss, but enough to keep the Fed guessing and the market on edge.”

As investors make sense of the new economic data, Bitcoin is once again looking to reclaim its highs and possibly reach a new ATH. Before the CPI data release, crypto expert Ali Martinez had noted that BTC’s earlier crash suggested it would rally after the inflation data release, regardless of the figures.

When #Bitcoin $BTC dips ahead of CPI or PPI reports, it often rallies right after the data drops — and vice versa. pic.twitter.com/nbXbxACeTL

— Ali (@ali_charts) July 15, 2025

Meanwhile, the odds of a Fed rate cut in July to 400-425 bps have fallen to 2.6% while the numbers to keep interest rates steady are at a high of 97.4%, according to CME FedWatch data. A strong US job data and rising inflationary concerns from heightened Trump tariffs have doused hopes of a July Fed rate cut ahead of the FOMC meeting on July 30.