U.S Consumer Price Index (CPI) Inflation Falls to 3% in June
- Core CPI inflation falls to 4.8% from 5.3% in May, the lowest level since November 2021.
- As inflation has slowed faster than projected, researchers believe BTC will rise to $35k.
According to the U.S. Bureau of Labor Statistics, inflation measured by the annual change in the Consumer Price Index (CPI) was 3% in June, beating market estimates of 3.1%. In addition, Core CPI inflation falls to 4.8% from 5.3% in May, the lowest level seen since November 2021. This allows the Federal Reserve to switch to a more subtle posture on monetary policy.
If headline inflation drops to 3%, investors can expect the stock and cryptocurrency markets to rise even higher. Analysts at JPMorgan predicted that inflation will be lower than expected, forcing the Federal Reserve to adopt a more subtle stance.
All Eyes on Upcoming Interest Rate Hike
CME FedWatch Tool projections after the release of the CPI data point to a 90% chance of a 25 bps rise at the FOMC meeting on July 26. The US dollar index (DXY) hit a low of 101.16, its lowest level in two months, and is expected to keep sliding. It will encourage a continuation of Bitcoin’s upward trend of over $31,000.
Moreover, after a rapid increase of over 1% in the minutes after the release of the CPI statistics, the price of bitcoin has set its sights once again over $31,000. As inflation has slowed faster than projected, researchers believe BTC’s value will rise to $35k. Still, a degree of uncertainty is to be anticipated.
Ethereum’s price has increased by 1% in the last day, trading at over $1900 as per data from CMC. After the enormous surge, the values of Bitcoin and Ethereum were above key thresholds.
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Read more: https://thenewscrypto.com/u-s-consumer-price-index-cpi-inflation-falls-to-3-in-june/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
