Bitcoin spiked higher as the June 12 Wall Street session opened, following an unexpected drop in United States inflation data.
Cointelegraph Markets Pro and TradingView reported a quick BTC price surge to $69,636 on Bitstamp.
Bitcoin jumped by $1,500 within seconds, driven by the May Consumer Price Index (CPI) report showing inflation cooling faster than anticipated.
Month-on-month CPI remained unchanged, while the year-on-year figure was 3.3%, both 0.1% below expectations.
“The all items index rose 3.3 percent for the 12 months ending May, a smaller increase than the 3.4-percent increase for the 12 months ending April.
The all items less food and energy index rose 3.4 percent over the last 12 months,” confirmed an official press release from the U.S. Bureau of Labor Statistics.
This result was a positive development for risk assets, including cryptocurrencies, which had faced challenges leading up to the CPI release, a typical pattern for Bitcoin and altcoins.
Markets were now focused on the upcoming June meeting of the Federal Reserve’s Federal Open Market Committee (FOMC), scheduled for later in the day.
The meeting would address interest rate decisions and feature economic commentary from Fed Chair Jerome Powell, crucial for market sentiment.
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Financial commentator Tedtalksmacro responded optimistically to the latest developments, suggesting that the CPI data might allow Powell to consider easing the tight financial policies characterized by high rates.
“The stage is set for J Powell to talk easing. Let’s go,” he summarized on X (formerly Twitter).
Michaël van de Poppe, founder and CEO of trading firm MNTrading, highlighted the declining U.S. dollar strength following the data release.
“The Dollar and Treasury Yields are dropping significantly as the markets are expecting rate cuts to be happening,” he noted.
Bitcoin thus recovered the losses incurred from U.S. employment data released the previous week.
More economic figures were expected by the end of the week, potentially leading to further BTC price volatility.
The latest projections from CME Group’s FedWatch Tool indicated shifting market expectations for rate cuts, with the probability of a rate cut at the September FOMC meeting rising to over 70%.
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