News

US Core CPI Data Shows Inflation Cooling, Bitcoin Backs Above $59,000

July 11, 2024 - Around 2 mins mins to read

Key Points:

  • June’s US core CPI data showed inflation eased to 3%, beating Wall Street expectations and marking a significant drop from previous estimates.
  • The news boosted market sentiment, especially in cryptocurrencies like Bitcoin, amid hopes of potential price rallies despite recent sell-offs by the German government.
  • The data suggests progress towards the Fed’s inflation target, potentially paving the way for anticipated interest rate cuts later this year, with implications for global financial markets.
Today, the global financial sector, alongside the cryptocurrency market, eagerly awaited the latest U.S. Consumer Price Index (CPI) data.
US Core CPI Data Shows Inflation Cooling, Bitcoin Backs Above $59,000

US Core CPI Data Shows Inflation Is Decreasing

According to the U.S. Labor Department’s report, inflation cooled to 3% in June, surpassing Wall Street’s expectations.

Specifically, the unadjusted US core CPI annual rate for June stood at 3.3%, slightly lower than the anticipated 3.4%, marking its lowest level since April 2021. On a monthly basis, the seasonally adjusted US core CPI rate in June was 0.1%, also below expectations of 0.2%, representing its lowest since August 2021.

Crypto market sentiment received a boost from the cooling inflation figures, which contrasted recent uncertainties sparked by the German government’s substantial crypto sell-off. The development has fueled speculations of a potential rally in Bitcoin and the broader cryptocurrency market.

Despite these positive indicators, Bitcoin‘s recovery above $59,000 has faced resistance. Over the past week, BTC has shown a modest 3% gain, hampered by lingering concerns over Mt. Gox creditors’ supply impacts and Germany’s seized Bitcoin sales.

Federal Reserve Eyes Potential Rate Cuts

The data indicated that the cost of living edged up by 0.1% in June, following a flat May, resulting in a year-over-year rise of 3.1%. Meeting these estimates would signal progress towards the Federal Reserve’s 2% inflation target, potentially paving the way for anticipated interest rate cuts later this year.

Looking forward, the subdued inflation data has stirred optimism in the financial markets, particularly within the cryptocurrency sector, while also heightening expectations of a forthcoming rate cut by the Federal Reserve, possibly as early as September.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

US Core CPI Data Shows Inflation Cooling, Bitcoin Backs Above $59,000

Key Points:

  • June’s US core CPI data showed inflation eased to 3%, beating Wall Street expectations and marking a significant drop from previous estimates.
  • The news boosted market sentiment, especially in cryptocurrencies like Bitcoin, amid hopes of potential price rallies despite recent sell-offs by the German government.
  • The data suggests progress towards the Fed’s inflation target, potentially paving the way for anticipated interest rate cuts later this year, with implications for global financial markets.
Today, the global financial sector, alongside the cryptocurrency market, eagerly awaited the latest U.S. Consumer Price Index (CPI) data.
US Core CPI Data Shows Inflation Cooling, Bitcoin Backs Above $59,000

US Core CPI Data Shows Inflation Is Decreasing

According to the U.S. Labor Department’s report, inflation cooled to 3% in June, surpassing Wall Street’s expectations.

Specifically, the unadjusted US core CPI annual rate for June stood at 3.3%, slightly lower than the anticipated 3.4%, marking its lowest level since April 2021. On a monthly basis, the seasonally adjusted US core CPI rate in June was 0.1%, also below expectations of 0.2%, representing its lowest since August 2021.

Crypto market sentiment received a boost from the cooling inflation figures, which contrasted recent uncertainties sparked by the German government’s substantial crypto sell-off. The development has fueled speculations of a potential rally in Bitcoin and the broader cryptocurrency market.

Despite these positive indicators, Bitcoin‘s recovery above $59,000 has faced resistance. Over the past week, BTC has shown a modest 3% gain, hampered by lingering concerns over Mt. Gox creditors’ supply impacts and Germany’s seized Bitcoin sales.

Federal Reserve Eyes Potential Rate Cuts

The data indicated that the cost of living edged up by 0.1% in June, following a flat May, resulting in a year-over-year rise of 3.1%. Meeting these estimates would signal progress towards the Federal Reserve’s 2% inflation target, potentially paving the way for anticipated interest rate cuts later this year.

Looking forward, the subdued inflation data has stirred optimism in the financial markets, particularly within the cryptocurrency sector, while also heightening expectations of a forthcoming rate cut by the Federal Reserve, possibly as early as September.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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