Bitcoin experienced a significant surge in value on June 12 following the release of surprising United States inflation data. The sudden increase in price was captured on the BTC/USD 1-hour chart, with Bitcoin reaching $69,636 on Bitstamp. This spike occurred as the Consumer Price Index (CPI) for May revealed that inflation was cooling faster than anticipated.
The month-on-month CPI remained unchanged from the previous month, while the year-on-year figure was 3.3% – both lower than the forecasted 3.4%. This news was welcomed by risk assets, including the cryptocurrency market, which had been under pressure leading up to the CPI release. Investors were now preparing for the Federal Reserve’s Federal Open Market Committee (FOMC) meeting later that day, where decisions on interest rates and economic commentary by Fed Chair Jerome Powell would have a significant impact on market sentiment.
Financial commentator Tedtalksmacro expressed optimism following the CPI data, suggesting that Powell may consider easing tight financial policies. Meanwhile, Michaël van de Poppe noted the decline in U.S. dollar strength post-data release, indicating market expectations of potential rate cuts.
Bitcoin managed to recover from losses incurred due to U.S. employment data from the previous week. Market participants were now focused on upcoming economic data releases that could lead to further price volatility for Bitcoin. The latest estimates from CME Group’s FedWatch Tool indicated a growing probability of rate cuts at the September FOMC meeting.
It is important to note that this article does not provide investment advice. All investment decisions involve risks, and readers are advised to conduct their own research before making any financial decisions.