The global financial sector, including the crypto market, was eagerly waiting for the US CPI data today. Notably, according to the latest data by the U.S. Labor Department, the inflation has cooled to 3% in June, down from the Wall Street estimates.,The cooling data appears to have boosted the market sentiment today, which was hit lately due to the massive dump by the German government. Furthermore, it has sparked speculations over a potential rally in Bitcoin price as well as in the broader crypto market.,According to the latest data released by the U.S. Bureau of Labor Statistics, the US CPI eased to 3% in June, after coming at 3.3% in the prior month. However, on a month-over-month (MoM) basis, the CPI inflation slightly noted an advancement of 0.1%, after it remained unchanged in May from April. Despite the slight surge, it came in line with the market estimates.,On a 12-month basis, the cooling CPI inflation has fueled market interest, sparking speculations over a positive sentiment in the broader financial market, let alone the crypto sector. In addition, it has also raised bets over a potential rate cut by the U.S. Federal Reserve as soon as September.,On the other hand, the Core CPI data showed that the inflation, excluding the food and energy prices, eased to 3.3% in June from 3.4% in the previous month. On a MoM basis, the Core CPI comes in at 0.1%, down from the market estimates and May’s figure of 0.2%.,Also Read: Ripple CTO Deems Republicans “Crazy” For Opposing CBDC,The US Consumer Price Index (CPI) is a crucial metric that the central bank closely watches to plan their rate cut plans. Now, with the recent economic data raising bets over a potential Fed rate cut in September. Having said that, it is expected that the investors can shift their focus towards risk-bet assets like Bitcoin and altcoins.,Recently, other economic data also came in positive for the financial market, let alone the digital assets sector. For context, the latest U.S. nonfarm payroll data showed a slowing job growth in the nation, raising the odds of a potential rate cut by the Federal Reserve.,Notably, following the release, the US 10-year Bond Yield fell 2.14% to 4.187, while the US Dollar Index Futures slumped 0.75% to $103.945.,Meanwhile, the CME FedWatch Tool reflects this same sentiment, showing an 81% probability of a 25 basis point cut in September, up from 70% before the CPI data release. Additionally, 25% of market participants now anticipate a third-rate cut in 2024, up from the previous expectation of only two cuts.,Concurrently, Bitcoin price made a significant recovery and surged nearly 2% to $59,000. However, as of press time, the BTC price had retraced to $57,800 a 0.20% surge from the intra-day low.,During the rally, BTC’s market capitalization and 24-hour trading volume rose by 0.26% and 5.17% respectively to $1,140,911,712,047 and $28,187,884,008.,Furthermore, the Bitcoin Futures Open Interest also rose about 3% after the US CPI release. Despite the recovery, over the last 24 hours, the BTC has dipped 0.40% in the last week and 13% in the last month.,Also Read: Terra Founder Do Kwon’s Wife Recovers Seized Real Estate Assets,
https://coinniu.com/breaking-btc-price-surges-as-us-inflation-eases-to-3-in-june/
