Bitcoin jumps near $110k after US inflation data shows signs of cooling
Bitcoin’s price increased 0.5% to $109,600 on Wednesday after United States inflation data for May came in below market expectations.
The asset’s move comes after a period of sustained strength, where it has held a range between $109,000 and $110,000 over the last three days.
The latest Consumer Price Index report showed year-over-year inflation of 2.4%, up from 2.3%, and core inflation of 2.8%, both figures below consensus forecasts.
The monthly core reading, which strips out food and energy, rose by just 0.1%, matching its slowest pace of the year and suggesting underlying price pressures are easing.
A deeper look into the BLS data reveals a notable divergence. The soft headline number was primarily driven by a 1.0% monthly fall in the energy index, with gasoline down 2.6%.
Declines in airline fares and used vehicles also contributed. However, persistent inflation remains in services, as the shelter index rose 0.3% for a fourth straight month, preventing a more substantial drop in the overall inflation rate.
This broad-based cooling of price pressures, particularly in the core measure, could bolster expectations for future interest rate cuts by the Federal Reserve.
The price reaction places Bitcoin near its recent highs but still below the all-time high of $111,900 set on May 22.
This stability follows a recovery from the prior week, during which Bitcoin traded between $103,000 and $105,000 and experienced a brief drop to $100,000 on June 5.
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