June inflation in the US exceeded expectations, triggering waves of fluctuations in financial markets and cryptocurrencies.
US CPI Inflation Data
The US Bureau of Labor Statistics released June CPI inflation data, revealing a rise to 2.7%, surpassing the 2.6% forecast. Inflation has now accelerated for two consecutive months. The annual core CPI came in at 2.9%, lower than the expected figure of 3%. Furthermore, the month-over-month inflation rate increased by 0.3%, higher than the previous month's rise.
Fed Rate Cut in Doubt
The hot CPI inflation data raises doubts about the possibility of a Federal Reserve rate cut. Currently, there is a 58% probability of a 25 basis point cut in September. However, the odds of two rate cuts this year have decreased. Market participants express uncertainty regarding changes in monetary policy amid newly imposed tariffs.
Bitcoin Price Holds Near $117K
After the CPI data release, Bitcoin price fluctuated around $117K. Previously, the price dropped due to selloffs by major holders and tariff concerns. The 24-hour price range was between $116,373 and $122,085. There is also positive sentiment among traders in the derivatives market indicating a rise in open interest in futures.
The rise in US inflation to 2.7% creates uncertainty in financial markets, which also affects cryptocurrencies and expectations about Fed rates.
