Bitcoin steadied after U.S. inflation data showed core prices cooling more than feared, but the cryptocurrency remains under pressure as markets weigh mixed signals from bonds and stocks.
The Bureau of Labor Statistics reported that headline Consumer Price Index (CPI) rose 4.2% year-over-year in May, matching economists’ expectations and up from April’s 3.8% gain. On a monthly basis CPI climbed 0.5%, in line with forecasts and slightly below April’s 0.6% increase. The closely watched core CPI, which strips out food and energy, rose just 0.2% in May—below the 0.3% forecast and softer than April’s 0.4%—while core CPI was up 2.9% year-over-year, in line with expectations and marginally higher than April’s 2.8%.
The softer-than-expected core monthly print reinforced the market view that the Federal Reserve will likely hold its policy rate at 3.50–3.75% at the June 17 meeting. Still, investors are pricing in a roughly one-in-four chance of at least one 25-basis-point hike later in the year, a view reflected in Fed-watch tools and forward markets.
Crypto reaction: Bitcoin (BTC) ticked up after the release but remained subdued, trading just above $61,000 (around $61,462 at the time of the report) and largely flat over the prior 24 hours. Broader risk sentiment was mixed—U.S. equity futures slipped and the 10-year Treasury yield rose to about 4.5%, while WTI crude continued lower, down roughly 1% at $88 a barrel.
Bottom line: Softer core inflation eased immediate rate-hike fears and gave risk assets a modest lifeline, but rising yields and weak equity futures kept pressure on crypto markets. Traders will be watching Fed commentary and upcoming data for clues on whether this disinflationary trend will persist.
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