US consumer inflation data for June 2025 shows an alarming rise, sparking concerns among economists and analysts. Inflation has surpassed expectations, impacting the cryptocurrency market.
US Inflation Data
The Consumer Price Index (CPI) for June in the US stood at 2.7% year-over-year, slightly above the expected 2.6%. The Core CPI, which excludes more volatile categories like food and energy, matched experts' predictions at 2.9%. The month-over-month CPI increase also aligned with analysts’ forecasts, resting at 0.3%.
Market Reaction to CPI Data
Immediately following the release of data from the US Bureau of Labor Statistics, Bitcoin's price dropped from over $117,000 to $116,400. However, the cryptocurrency managed to rebound back to its initial position. Currently, Bitcoin is up over $10,000 from the previous week's levels, when it reached a new all-time high of over $123,000.
Impact of Trump's Tariffs on the Economy
Experts attribute the recent rise in inflation partly to tariffs imposed by President Donald Trump, which are beginning to take effect on the economy. Previous months benefited from falling gas prices and disinflation within the housing sector, but the current landscape has changed.
Thus, the rise in inflation in June has led to fluctuations in the cryptocurrency market, illustrating the connection between economic indicators and asset prices like Bitcoin.
