Altcoin
Bitcoin, Altcoins Rise as US CPI Drops to 3.3%
The United States reported a notable decline in its unadjusted data 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 forecast 3.4% and the previous 3.4%.
Likewise, the unadjusted core Annual CPI rate it fell to 3.4%, below the forecast 3.5% and the previous 3.6%. This decline marks the lowest annual core CPI rate since April 2021.
The challenges of inflation in the real estate sector
Despite the overall decline in inflation rates, concerns remain, particularly in the real estate sector. Shelter inflation increased 0.4% in May and 5.4% year-over-year. Housing costs, given their substantial weight in the CPI calculation, have posed a persistent challenge to the Federal Reserve in its efforts to combat inflation.
How did the markets react?
The cryptocurrency market has shown signs of recovery in response to the CPI report. QCP, a leading market analyst, noted an increase in call buying on June 13, indicating that investors were positioning themselves for a potential upside surprise.
Furthermore, there was a significant increase in the financing rate, suggesting a market ready to retest its highs if the CPI data aligns with expectations and the results of the Federal Open Market Committee (FOMC) meeting remain neutral. This alignment triggered a rapid recovery among almost all of the top ten cryptocurrencies.
Bitcoin responded positively to the release of the CPI data, rising 2% at the time of writing. Ethereum followed suit with a 2.4% increase. Other major cryptocurrencies, such as Binance Coin (BNB) and Solana (SOL), also posted gains of 2.2% and 3.8%, respectively.
Bullish sentiment in the markets!
Spot prices of Bitcoin and Ether remained relatively stable as traders anxiously 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 rebounded from a low of 10%, higher as traders closed their short futures positions to profit from their underlying trades .
This bullish backdrop suggests that yields could be pushed higher, potentially exceeding 15%. Bitcoin could reach $70,000 soon given the current positive market momentum.
Read also: Why did the price of Bitcoin rise above $69,000 today?
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