Bitcoin saw a sharp increase leading up to the June 12 Wall Street open following an unexpected decline in US inflation figures.
A sudden spike in the price of bitcoin to $69,636 on Bitstamp was documented by data from TradingView and Cointelegraph Markets Pro. When the Consumer Price Index (CPI) for May revealed faster-than-expected inflation, bitcoin surged $1,500 in a matter of seconds. The year-over-year total was 3.3%, which was 0.1% less than expected, but the month-over-month CPI remained steady from the previous month.“The all items index increased by 3.3 percent in the year that ended in May, which was less than the 3.4 percent gain in the year that ended in April. According to an official press release from the U.S. Bureau of Labor Statistics, “the all items less food and energy index increased by 3.4 percent over the last 12 months.”
The result was a boon for risk assets, including crypto, which had suffered in the run-up to CPI in what had become classic behavior for Bitcoin and altcoins.
The Federal Open Market Committee, or FOMC, meeting in June is scheduled later today, so markets were preparing for it.Interest rate decisions and Fed Chair Jerome Powell’s economic remarks would be crucial in influencing sentiment in this case. Financial analyst Tedtalksmacro expressed optimism in response to the most recent occurrences. He suggested that Powell had been given permission by CPI to consider loosening restrictive financial policy generally, including through raising interest rates.
“The stage is set for J Powell to talk easing. Let’s go,” he summarized on X.
Michaël van de Poppe, founder and CEO of trading firm MNTrading, focused on falling U.S. dollar strength in the wake of the data.
“The Dollar and Treasury Yields are dropping significantly as the markets are expecting rate cuts to be happening,” he noted.
“This could be the massive sign for Altcoins and Bitcoin.”
As a result, Bitcoin reversed the losses from the previous week’s U.S. employment data.Such numbers were still expected by the end of the week, which meant that more volatility in the price of bitcoin was possible. With over 70% of market bets on a September FOMC meeting, the most recent estimates from CME Group’s FedWatch Tool, on the other hand, showed shifting market expectations on when rate cuts could occur.