Will US CPI, PPI Data Trigger Crypto Market Volatility This Week?
Highlights
- US CPI core inflation numbers to surge first time in 2025 driven by Trump tariff war.
- Higher-than-expected inflation could dim prospects for Federal Reserve rate cuts ahead of their June 17-18 policy meeting.
- Subdued implied volatility for Bitcoin (below 40%) and Ethereum (around 65%), signals market stability.
- Key decisions await on the Crypto Market Structure Bill, a spot Litecoin ETF, and the SEC’s "DeFi and the American Spirit" roundtable.
This week could be big for the crypto market as the US reveals May’s data for the Consumer Price Index (CPI) and Producer Price Index (PPI). A Bloomberg report shows that the Trump tariff war has finally hit consumers, with inflation speeding up in May, as businesses pass on the costs to consumers. Apart from observing US CPI, PPI numbers, the cryptocurrency market awaits key decisions on the Crypto Market Structure Bill, spot Litecoin ETF, SEC roundtable on DeFi, and much more.
Trump Tariff War Can Push the US CPI Inflation Higher
Bloomberg analysts estimate that US consumers could see a likely faster inflation in May, as uncertainties with the Trump tariff war force businesses to pass higher import duties to consumers gradually.
The Bloomberg economists also stated that the cost of goods and services, excluding volatile categories like food and energy, increased by 0.3% in May, the largest in four months, following a 0.2% uptick in April, according to the core consumer price index.
Furthermore, the core inflation numbers are likely to accelerate to 2.9% annually, while marking the first increase this year. Upcoming US CPI reports on Wednesday, followed by producer price (PPI) data on Thursday, will give Federal Reserve officials a clear picture of inflation trends and the impact of higher tariffs ahead of the crucial June 17-18 policy meeting. If actual inflation numbers come higher, the chances of Fed Rate cuts could probably fade.
Crypto Market Volatility Remains Low as BTC, ETH Seek Stability
As per data from Greeks.Live, implied volatility for Bitcoin (BTC) and Ethereum (ETH) continues to decline. BTC’s short- and medium-term implied volatility has dropped below 40%, while ETH volatility hovers around 65% across all major durations. This shows that analysts are not predicting much volatility in the short term despite the US CPI, and PPI numbers coming this week.
Key Crypto Events to Watch Ahead This Week
- SEC Roundtable: Later today, June 9, the U.S. Securities and Exchange Commission will host a discussion titled “DeFi and the American Spirit,” focusing on the intersection of decentralized finance and national economic interests.
- Crypto Market Structure Bill: The U.S. House of Representatives will deliberate on the highly anticipated Crypto Market Structure Bill, a key step in shaping the regulatory framework for digital assets.
- SEC on Litecoin ETF: The SEC is expected to delay its decision on Canary Capital’s application for a Litecoin Spot ETF, with a response due by June 10.
- Bitcoin Investment: Michael Saylor’s Strategy plans to raise approximately $1 billion through a preferred stock offering to boost its Bitcoin holdings.
- Pro-Crypto Mike Selig Emerges As CFTC Chair Frontrunner, Gains Ripple CLO’s Endorsement
- ‘Every Crypto ETF You Can Imagine’: Expert Predicts Flurry of Filings After REX-Osprey’s 21 Applications
- Robinhood Lists Strategy’s Bitcoin-Backed Stocks, Boosting Saylor’s BTC Credit Model
- Bitcoin ETFs See 2025 Record Weekly Inflows of $3.2B as BTC Eyes New ATH
- Expert Predicts SHIB Rally as Shiba Inu Restores Shibarium After $4M Hack Shutdown
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- Bitcoin Price Hits $120K Ahead of Q4 — Can Citigroup’s Forecast Hold Up?
- Pi Network Price at Risk of Another Crash as Mysterious Whale Stops Buying
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