Bitcoin experienced a modest price increase following the release of US inflation data showing the Consumer Price Index (CPI) rose to 2.4% year-over-year in May. This figure came in slightly below market expectations of 2.5% but marked the first increase in inflation since February.
The cryptocurrency reached approximately $109,120 after the CPI announcement. Market analysts attributed the tempered reaction to the largely anticipated nature of the inflation figures.
Analysts emphasized that Bitcoin’s near-term price trajectory remains heavily dependent on inflation outcomes and the Federal Reserve’s interest rate decisions. Potential scenarios range from sell-offs to buying opportunities based on future data and Fed communications.
Attention now turns to upcoming economic indicators, including jobs data and the Producer Price Index (PPI), which will provide further clarity on inflation trends and potential Federal Reserve policy shifts.
The Federal Open Market Committee (FOMC) is widely expected to maintain the current benchmark interest rate range of 4.25-4.50% during its June meeting. Market sentiment is closely tied to the Fed’s forward guidance regarding future rate paths.