Bitcoin bounced back sharply on June 12th, just as trading began on Wall Street, following an unexpected dip in the U.S. inflation rate. This sudden surge witnessed Bitcoin hitting a striking $69,636 on Bitstamp, jumping $1,500 in the blink of an eye as the May stats from the U.S. Consumer Price Index (CPI) showed a quicker-than-anticipated cooling of inflation.
In specifics, month-on-month CPI remained unaltered from last month whereas the year-on-year figure was 3.3%, both a tad lower than predicted. As confirmed by the U.S. Bureau of Labor Statistics, the index for all items, excluding food and energy, climbed 3.4% over the last 12 months in comparison with April’s 3.4%.
This decline in inflation proved beneficial for risk-bearing assets, such as cryptocurrencies. Quite notably, these assets had faced losses prior to the release of the CPI – an occurrence that crypto enthusiasts have come to consider a trend for Bitcoin and altcoins.
Market participants are now waiting in anticipation for the Federal Reserve’s Federal Open Market Committee (FOMC) meeting due later today that will decide upon interest rate changes, alongside Fed Chair Jerome Powell’s economic commentary, both of which will massively affect the market sentiment.
This positive news came just on time to eliminate losses Bitcoin had suffered due to American employment data in the preceding week. It is possible that the projected data for the latter half of the week might lead to fluctuations in Bitcoin prices. The CME Group’s FedWatch Tool suggests market predictions have started shifting, with a 70% likelihood of rate cuts occurring during the FOMC’s meeting in September.