Bitcoin (BTC) Price Skyrockets Above $69,000 as US CPI Data Lower Than Expected

The US Consumer and Price Index for May showed a slight movement for the inflation data, showing a minor decrease to 3.3% compared to April’s numbers of 3.4%.

These CPI figures might have a particular influence on the financial markets, as the US Federal Reserve is set to meet later today to determine its monetary policy and whether it will follow the ECB in reducing the interest rates.

❖ U.S CPI (MOM) (MAY) ACTUAL: 0.0% VS 0.3% PREVIOUS; EST 0.1%

❖ U.S CPI (YOY) (MAY) ACTUAL: 3.3% VS 3.4% PREVIOUS; EST 3.4%

❖ U.S CORE CPI (MOM) (MAY) ACTUAL: 0.2% VS 0.3% PREVIOUS; EST 0.3%

❖ U.S CORE CPI (YOY) (MAY) ACTUAL: 3.4% VS 3.6% PREVIOUS; EST 3.5%

— *Walter Bloomberg (@DeItaone) June 12, 2024

Being lower than expected, the US CPI numbers resulted in immediate price volatility for bitcoin and the rest of the crypto market.

As reported earlier, the primary cryptocurrency had slumped to $66,000 as investors pulled $200 million out of the ETFs ahead of the CPI announcement and the subsequent FOMC meeting.

BTC had recovered some ground to $67,500 and soared by more than a grand and a half within minutes after the CPI went out. Currently, bitcoin trades inches above $69,000.

All eyes will now be on the US Federal Reserve later today. The US central bank will meet to determine whether it will keep the interest rates at current levels of 5.25% to 5.5% or it will mimic the ECB and lower them.

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