According to Cointelegraph: Bitcoin (BTC) experienced a dramatic price surge on June 12, skyrocketing $1,500 in mere seconds following the release of U.S. inflation data. The unexpected drop in the Consumer Price Index (CPI) provided a boost to BTC and other risk assets, reversing days of price declines in the cryptocurrency market.
CPI Triggers a 3% BTC Price Surge
Data from Cointelegraph Markets Pro and TradingView recorded a rapid BTC price jump to $69,636 on Bitstamp. This surge occurred as the May CPI print indicated that inflation was cooling faster than anticipated. On a month-on-month basis, CPI remained unchanged, and the year-on-year figure was 3.3% — both 0.1% lower than forecasts.
In an official press release, the U.S. Bureau of Labor Statistics confirmed:
"The all items index rose 3.3 percent for the 12 months ending May, a smaller increase than the 3.4-percent increase for the 12 months ending April. The all items less food and energy index rose 3.4 per cent over the last 12 months."
Market Reaction and Upcoming FOMC Meeting
The CPI report was a boon for risk assets, including Bitcoin and altcoins, which had suffered in the run-up to the data release. As markets now turn their attention to the Federal Reserve’s Federal Open Market Committee (FOMC) meeting scheduled for later in the day, the decision on interest rate adjustments and Fed Chair Jerome Powell’s economic commentary will be closely watched.
Financial Commentary and Expectations
Reacting to the CPI data, financial commentator Tedtalksmacro expressed optimism. He suggested that the latest CPI figures could give Powell the leeway to consider easing the current tight financial policies characterized by high interest rates.
"The stage is set for J Powell to talk easing. Let’s go," he summarized on X (formerly Twitter).
Michaël van de Poppe, founder and CEO of trading firm MNTrading, highlighted the impact on the U.S. dollar and Treasury Yields: "The Dollar and Treasury Yields are dropping significantly as the markets are expecting rate cuts to be happening. This could be a massive sign for Altcoins and Bitcoin."
Future Prospects and Market Sentiment
With Bitcoin erasing the losses incurred from the previous week’s U.S. employment data, the market remains volatile ahead of further economic reports. The latest estimates from CME Group’s FedWatch Tool indicate that market bets are shifting towards a potential rate cut in the September FOMC meeting, now over 70%.
The surprising dip in U.S. inflation has reignited optimism in Bitcoin and the broader crypto market. As investors await the FOMC’s decisions, the possibility of a more Bitcoin-friendly financial policy easing becomes increasingly likely.