Altcoin
Bitcoin, Altcoins Rise as US CPI Drops to 3.3%
The United States does reported a decrease in the annual rate of the unadjusted consumer price index (CPI) for May, which represents a huge turning point in economic trends. The annual CPI rate fell to 3.3%, slightly below the forecast 3.4% and the previous 3.4%.
Likewise, the annual unadjusted core CPI rate fell to 3.4%, below the forecast 3.5% and the previous 3.6%. This decline represents the lowest annual core CPI rate since April 2021.
Despite the overall decline in inflation rates, reasons for concern remain. Shelter inflation increased 0.4% in May and 5.4% year-over-year. Given their important role in the CPI calculation, housing costs have posed a persistent challenge to the Federal Reserve in its battle against inflation.
The cryptocurrency market showed signs of recovery in response to the report. QCP, a well-known market analyst, reported a surge in call buying on June 13, meaning investors were positioning themselves for an upside surprise.
On top of that, there was a huge increase in the funding rate, suggesting a market ready to retest its highs if the CPI data aligns with expectations and the Federal Open Market Committee (FOMC) meeting results remain neutral. And the CPI led to a rapid recovery of almost all cryptocurrencies in the top ten.
Bitcoin responded positively to the release of the CPI data, rising by 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 recorded gains of 2.2% and 3.8%, respectively.
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 and QCP said BTC futures swap points rebounded from a low of 10% and witnessed a rally 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%. And Bitcoin could reach $70,000 at any time.