Bitcoin
Bitcoin and Altcoin Surge as US CPI Rate Drops to 3.3%
The US reported a notable decrease in its unadjusted value Consumer Price Index (CPI) annual rate for May, signaling a significant change in economic trends. The annual CPI rate fell to 3.3%, slightly below the expected 3.4% and the previous 3.4%.
Likewise, the unadjusted core Annual CPI rate fell to 3.4%, below the predicted 3.5% and the previous 3.6%. This drop marks the lowest annual core CPI rate since April 2021.
Challenges of inflation in the housing sector
Despite the global decline in inflation rates, concerns remain, especially in the housing sector. Shelter inflation rose 0.4% in May and increased 5.4% year over year. Housing-related costs, given their substantial weight in the CPI calculation, have been a persistent challenge for the Federal Reserve in its efforts to combat inflation.
How did the markets react?
The crypto market showed signs of revival in response to the CPI report. QCP, a prominent market analyst, noted an increase in June 13 call option buying, indicating that investors were positioning for a potential positive surprise.
Additionally, there was a significant increase in the funding rate, suggesting a market poised to retest its highs if the CPI numbers align with expectations and the results of the Federal Open Market Committee (FOMC) meeting remain neutral. This alignment has sparked a rapid revival among almost all of the top ten cryptocurrencies.
Bitcoin responded positively to the CPI data release, rising 2% at press time. Ethereum followed suit with a 2.4% increase. Other major cryptocurrencies such as Binance Coin (BNB) and Solana (SOL) also saw gains of 2.2% and 3.8%, respectively.
Bullish sentiment in the markets!
Bitcoin and Ether spot prices remained relatively stable as traders eagerly awaited the release of CPI data and the results of the FOMC meeting. Bullish sentiment is now high, with QCP noting that BTC futures swap points bounced off a 10% low, recovering as traders closed their short futures positions to take profits on their core trades.
This bullish environment suggests yields could rise, potentially exceeding 15%. Bitcoin could reach $70,000 soon given the current positive market dynamics.
Read too: Why did Bitcoin price rise above $69K today?
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