The latest data from the Bureau of Labor Statistics reveals that the U.S. Consumer Price Index (CPI) increased by 0.1% in May, lower than the anticipated 0.2%. This marks an improvement from the previous month’s increase, which also stood at 0.2%. Year-over-year, CPI rose by 2.4%, slightly under the 2.5% forecast and showing a modest increase from April's 2.3%.
The Core CPI, which excludes food and energy categories, also came in lower than expected at a rise of 0.1% for May compared to predictions of 0.3%. Its year-over-year statistic matched expectations at 2.8%, consistent with April’s figure. Following this announcement, Bitcoin’s price experienced a minor increase, rising approximately 0.6% to $109,800.
Market analysts are interpreting this softer inflation data as a potential signal for the Federal Reserve to consider rate cuts, with traders anticipating two cuts by the end of the year. This sentiment has buoyed both cryptocurrency and traditional markets, with U.S. stock index futures rebounding and the 10-year Treasury yield decreasing to 4.45%.
The Core CPI, which excludes food and energy categories, also came in lower than expected at a rise of 0.1% for May compared to predictions of 0.3%. Its year-over-year statistic matched expectations at 2.8%, consistent with April’s figure. Following this announcement, Bitcoin’s price experienced a minor increase, rising approximately 0.6% to $109,800.
Market analysts are interpreting this softer inflation data as a potential signal for the Federal Reserve to consider rate cuts, with traders anticipating two cuts by the end of the year. This sentiment has buoyed both cryptocurrency and traditional markets, with U.S. stock index futures rebounding and the 10-year Treasury yield decreasing to 4.45%.
