Bitcoin explodes towards $60,000 as June CPI numbers are favorable

The US Bureau of Labor Statistics (BLS) has released this month’s consumer price index data.

As is often the case, this has led to some volatility in the cryptocurrency markets.

In June, the CPI for all urban consumers fell by 0.1%, seasonally adjusted This represents a change of 3% over the past 12 months, not seasonally adjusted. In the news, the price of Bitcoin soared to nearly $60,000 amid increased volatility. It has returned to where it is currently trading around $59,200. Source: TradingView

Jag Kooner, Head of Derivatives at Bitfinex, spoke to CryptoPotato and weighed in on the importance of the CPI to the performance of the broader cryptocurrency market.

He noted that the consensus had been for CPI to remain unchanged, but it actually fell by 0.1%. This, he said, supports the narrative of slowing inflation:

A lower than expected CPI reading today could see BTC move along with risk assets as it would support the narrative of slowing inflation and a possible rate cut. Investors will be closely monitoring Fed communications and market reactions to today’s CPI release and upcoming Fed meetings to gauge BTC’s alignment with stocks. However, we believe that a single inflation print would not dispel concerns about Bitcoin oversupply, which would take longer for the market to fully price.

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