BREAKING: US CPI Rate Drops 3.3%, Bitcoin and Altcoins Surge

The U.S. has reported a notable decrease in its unadjusted Consumer Price Index (CPI) annual rate for May, signaling a significant shift in economic trends. The CPI annual rate dropped to 3.3%, slightly below the expected 3.4% and the previous 3.4%.

Similarly, the unadjusted core CPI annual rate fell to 3.4%, below the anticipated 3.5% and the prior 3.6%. This decline marks the lowest core CPI annual rate since April 2021.

Inflation Challenges in the Housing Sector

Despite the overall decline in inflation rates, concerns remain, particularly in the housing sector. Shelter inflation rose by 0.4% in May and increased by 5.4% year-over-year. Housing-related costs, given their substantial weight in the CPI calculation, have been a persistent challenge for the Federal Reserve in its efforts to combat inflation.

How Have the Markets Reacted?

The crypto market has shown signs of revival in response to the CPI report. QCP, a prominent market analyst, noted a surge in the buying of 13-Jun calls, indicating that investors were positioning themselves for a potential upside surprise.

Additionally, there was a significant increase in the funding rate, suggesting a market poised to retest its highs if the CPI figures align with expectations and the Federal Open Market Committee (FOMC) meeting results remain neutral. This alignment has sparked a swift revival among almost all top ten cryptocurrencies.

Bitcoin responded positively to the CPI data release, rising by 2% at press time. Ethereum followed suit with a 2.4% increase. Other major cryptocurrencies, such as Binance Coin (BNB) and Solana (SOL), also experienced gains of 2.2% and 3.8%, respectively.

Bullish Sentiment in the Markets!

Bitcoin and Ether spot prices remained relatively stable as traders anxiously awaited the CPI data release and the outcomes of the FOMC meeting. The bullish sentiment is now high, with QCP noting that BTC futures swap points bounced off a low of 10%, rallying as traders closed their short futures positions to take profits on their basis trades.

This bullish environment suggests that yields could be pushed higher, potentially exceeding 15%. Bitcoin could reach $70K anytime soon, given the current positive market momentum.

Also Read : Why Bitcoin Price Surged Above $69K Today?

Looking to capitalize on the crypto market? Do your own research before investing.