The post Bitcoin and Altcoin Surge as US CPI Rate Declines to 3.3% appeared first on Coinpedia Fintech News
The U.S. has reported a decrease in its unadjusted Consumer Price Index (CPI) annual rate for May, which is a huge turn in economic trends. The CPI annual rate dropped to 3.3%, slightly below the expected 3.4% and the previous 3.4%.
Similarly, the unadjusted core CPI annual rate fell to 3.4%, below the anticipated 3.5% and the prior 3.6%. This decline represents the lowest core CPI annual rate since April 2021.
Despite the overall decline in inflation rates, there are still areas of concern. Shelter inflation rose by 0.4% in May and was up 5.4% year-over-year. Given their massive part in the CPI calculation, housing-related costs have been a persistent challenge for the Federal Reserve in its battle against inflation.
The crypto market has shown signs of revival in response to the report. QCP, a notable market analyst, reported a surge in the buying of 13-Jun calls, meaning that investors were positioning themselves for an upside surprise.
Alongside this, there was a huge increase in the funding rate, suggesting a market ready to retest its highs if the CPI print aligns with expectations and the Federal Open Market Committee (FOMC) meeting results remain neutral. And the CPI has delivered a quick revival by almost all cryptos in the top ten.
Bitcoin has responded positively to the CPI data release, rising by 2% as of press time. Ethereum followed suit with a 2.4% increase. Other major cryptocurrencies such as Binance Coin (BNB) and Solana (SOL) also experienced gains of 2.2% and 3.8%, respectively.
Bitcoin and Ether spot prices were relatively stable as traders anxiously awaited the release of the CPI data and the outcomes of the FOMC meeting. The bullish sentiment is now high, and QCP stated that BTC futures swap points bounced off a low of 10% and saw a rally as traders closed their short futures positions to take profits on their basis trades.
This bullish environment suggests that yields could be pushed higher, potentially exceeding 15%. And Bitcoin could hit $70K anytime now.