Key Points
- The US inflation report released today showed a core CPI rate for June of 3.3%.
- New CPI data triggered a rally for Bitcoin above $59,000.
Bitcoin and the general crypto market, along with major equities, recorded a short-term rally today, following the release of the June CPI report.
Following the lower-than-expected figures, BTC rallied past the $59,000 mark, reaching prices of around $59,300.
At the moment of writing this article, BTC is trading below $58,000, following the sudden surge earlier today.
Ahead of the report, Bitcoin’s price recorded intense volatility, as traders were expecting that the inflation numbers could solidify expectations for the Federal Reserve to cut interest rates in the coming months.
A Lower-Than-Expected CPI June Data
Traders were eagerly waiting for the US inflation report for last month, which came in cooler compared to analysts’ expectations.
The US Bureau of Labor Statistics revealed today that the unadjusted annual core CPI rate for June was 3.3%, below the market expectations of 3.4%. This is the lowest level since April 2021.
Also, the seasonally adjusted monthly core CPI rate for June was 0.1%, below the market expectation of 0.2%, marking the lowest level since August 2021.
Besides the short rally in the crypto market, stock futures also climbed following the report which showed an eased inflation that exceeded economists’ expectations.
According to the latest data, the Nasdaq Composite rose by 1.18% and the NYSE Composite increased by 0.92% in pre-market trading.
Chances of a Rate Cut in September Surge
Bitfinex Head of Derivatives Jag Kooner said that today’s lower-than-expected CPI data signals a more significant slowdown in inflation. This could reportedly reinforce the market’s expectation of a rate cut in September.
Also, according to the Chicago Mercantile Exchange (CME) FedWatch tool, interest rate traders have increased the chances that the US will see a rate cut in the near future.
Chances surged from 68.1% before the reading of the latest CPI data to 81.3% after the report came out.