Cooler-than-expected June CPI inflation bolsters crypto and equity markets
Bitcoin and the wider cryptocurrency market posted an uptick, rising alongside stocks following cooler U.S. inflation data for June.
Bitcoin BTC +1.15% and the wider cryptocurrency market rallied on Thursday, along with major equities, after cooler U.S. Consumer Price Index (CPI) data for June.
The June CPI, released Thursday morning by the U.S. Bureau of Labor Statistics , came in slightly lower than economist forecasts. The reading was followed by a 1% uptick in the price of bitcoin in the past hour, alongside a 2% gain in ether in the same period.
Stock futures also climbed after the latest CPI report indicated an easing of inflation that exceeded economists' expectations. The Nasdaq Composite rose by 1.18%, while the NYSE Composite increased by 0.92% in pre-market trading.
"Today's lower than expected reading signals a more significant slowdown in inflation, which could reinforce the market's expectation of a rate cut in September," Bitfinex Head of Derivatives Jag Kooner said.
According to the Chicago Mercantile Exchange (CME) FedWatch tool , interest rate traders have increased the chances of a rate cut in September from 68.1% before the reading to 81.3%. Kooner added that a September rate cut could boost equities and cryptocurrencies by increasing liquidity and risk appetite.
Cooler-than-expected inflation reading for June
The U.S. Bureau of Labor Statistics announced Thursday that the unadjusted annual core CPI rate for June was 3.3%, slightly below the market expectation of 3.4%. This marks the lowest level since April 2021.
The seasonally adjusted monthly core CPI rate for June was 0.1%, also below the market expectation of 0.2% and the lowest level since August 2021.
Bitcoin's price increased 1% in the past 24 hours and was changing hands for $58,704 at 9:20 a.m. ET, according to The Block's Price Page. The global cryptocurrency market cap today stands at $2.29 trillion, an increase of 1.6% in the last 24 hours.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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