Bitcoin Price Surges by 15K in Seconds Following Reports of Slowing Inflation in US CPI

Bitcoin experienced a significant surge in price as it entered the Wall Street opening on June 12, following a surprising drop in United States inflation data.
The sudden spike saw BTC reaching $69,636 on Bitstamp, gaining $1,500 in a matter of seconds. This surge was fueled by the latest Consumer Price Index (CPI) report, which revealed that inflation was cooling at a faster rate than anticipated. The month-on-month CPI remained unchanged from the previous month, while the year-on-year figure stood at 3.3%, both lower than the forecasted 3.4%.
The news was well received by risk assets, including cryptocurrencies, which had been under pressure leading up to the CPI release, a pattern that had become typical for Bitcoin and other digital assets.
Investors now awaited the Federal Reserve’s Federal Open Market Committee (FOMC) meeting scheduled for later that day, where decisions on interest rate adjustments and comments on the economy by Fed Chair Jerome Powell would be closely watched for market sentiment.
Financial commentator Tedtalksmacro expressed optimism following the CPI data, suggesting that Powell may consider easing the tight financial policy by keeping interest rates high.
Meanwhile, Michaël van de Poppe, founder and CEO of trading firm MNTrading, noted the significant drop in the U.S. dollar and Treasury Yields following the data release, as the markets anticipated potential rate cuts.
Bitcoin managed to recover from losses incurred the previous week due to U.S. employment data, setting a positive tone for the cryptocurrency ahead of further potential price volatility as more economic figures were expected by the end of the week.
Market expectations for rate cuts shifted, with the September FOMC meeting now seeing over a 70% probability according to CME Group’s FedWatch Tool.
It is important to note that this article does not provide investment advice or recommendations. All investment and trading decisions involve risks, and readers are advised to conduct their own research before making any financial decisions.