U.S. June CPI Drops 0.4% MoM; Bitcoin Climbs to $63,400
AI Market Summary
June U.S. CPI and core inflation printed below expectations, reinforcing disinflation momentum and easing near-term real-rate pressure. Risk assets reacted positively, with Bitcoin extending gains to around 63,400. The setup now hinges on Fed reaction function: despite the softer inflation data, FedWatch still reflects elevated perceived odds of near-term tightening, and upcoming congressional testimony could shift rate expectations and volatility across crypto and broader markets.
Impact level
● High
Affected assets
BTC/USDT+2.23%
AI Insight · BTC/USDTAI Insight
▲ Bullish
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Odaily Planet Daily reported that the U.S. Consumer Price Index (CPI) fell 0.4% month over month in June, versus economists' call for a 0.1% decline, after a 0.5% increase in May. On a year-over-year basis, CPI rose 3.5%, below the 3.8% consensus estimate and down from 4.2% in May.
Core CPI, which strips out food and energy, was unchanged in June, compared with expectations for a 0.2% increase; May posted a 0.2% gain. Core CPI rose 2.6% year over year, below the 2.9% forecast. The report also showed the May core CPI reading at 2.9% year over year.
After the data, Bitcoin added to earlier gains, rising to $63,400, up about 2% over the past 24 hours. CME FedWatch data show the probability of a July rate hike climbed yesterday to as high as 42%, up from 8% a month earlier. Federal Reserve Chair Kevin Warsh is scheduled to testify before Congress on economic conditions in roughly 90 minutes. (CoinDesk)
