Recent US consumer inflation data has significantly impacted the cryptocurrency market, particularly Bitcoin's price, which continues to fluctuate amid expectations regarding future monetary policy.
US Inflation Data
In June, the Consumer Price Index (CPI) in the US showed an increase in both the headline and core measures. The headline CPI reached 2.7% year-over-year, marking its highest level since February. The core CPI also rose to 2.9% annually, slightly below forecasts.
Short-term Bitcoin Outlook
The short-term outlook for Bitcoin is mixed. Expected core figures provided some relief, but rising inflation dampened hopes for a dovish pivot at the upcoming July Federal Open Market Committee meeting. If the Producer Price Index (PPI) comes in softer than expected, Bitcoin may reclaim levels above $120,000.
Key Levels to Watch
Bitcoin surged to a new yearly high of $123,218 but retraced sharply to $116,500. For bulls, reclaiming the zone between $119,250 and $120,700 is crucial for a potential bullish trend. Otherwise, a revisit to the 113,700–115,300 range may be forthcoming.
Despite short-term volatility, long-term trends suggest that dips in Bitcoin may be viewed as potential buying opportunities, with market participants remaining attentive to changes in key economic indicators.
