US Inflation: June CPI Data In!

By Negativeland | Negativeland | 13 Jun 2024

US CPI and Core CPI data for May 2024 are now available, which will be crucial for the performance of Bitcoin and the crypto market




Here is the inflation data

Today is a crucial day. The US inflation data, pending the FOMC, could in fact determine the performance of Bitcoin and the crypto market in general in the short term, in a context where macro factors seem to be the ones that are attracting the most interest among investors.

Analysts have bet on the annual inflation rate to remain at 3.4%, while compared to the “core” figure, forecasts gave an increase of 0.3% for May, in line with the April data.

Consequently, interest rates should also remain unchanged, but for this we will have to wait for the Fed’s opinion in the evening.

It has been a long time since the US inflation data were awaited with such trepidation. With Bitcoin rapidly rising in the first months of 2024, no one had paid particular attention to it, but with the first setbacks and an increasingly uncertain macroeconomic situation, the US CPI becomes a fundamental criterion for seeing which direction the market can take.

This has been demonstrated by the price action of BTC in recent days, which fell to almost $66k just this week. For some, BTC’s “stumble” could just be a “chase” for a more solid rise in light of favorable data, while for others there would be a risk of seeing the first cryptocurrency fall to the $60k level.


Crucial data for the crypto industry

As the announcement approached, the crypto world has seen increased volatility, with BTC apparently recovering from a local low of $66k, and Ethereum in its wake fighting for $3,500.

A medium-long term bullish view could ignore this data, but it is undeniable that all this attention to the CPI publication is decisive for the price action of BTC in the short term.

Last month, the CPI had reached 3.4% yoy, and the forecasts have always stood at 3.4%.

The data just released is slightly better than expected:

CPI (yoy): +3.3%
CPI core (yoy): +3.4%

Bitcoin has in fact immediately reacted well, instantly exceeding $69k perhaps aiming again for the fundamental psychological support of $70k. However, we will have to wait a little longer to see how investors will behave, awaiting the appointment with the FOMC.

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Interesting and fresh news on the world of cryptocurrencies. The articles are courtesy of Luca Boiardi of The Crypto Gateway

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