Bitcoin steadies after cooler-than-expected core inflation, but upside remains capped
Bitcoin pared losses on Wednesday after U.S. inflation data showed core consumer prices rose less than feared in May, tempering immediate rate-hike worries for markets. 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%—while month-over-month CPI climbed 0.5%, the same as forecast and a touch below April’s 0.6%.
The key reading for markets, core CPI (which strips out volatile food and energy costs), increased 0.2% in May versus forecasts of 0.3% and April’s 0.4%. On a yearly basis, core CPI was up 2.9%, in line with expectations and slightly above April’s 2.8%.
That softer-than-feared core monthly print reinforced the market view that the Federal Reserve will hold its policy rate at 3.50–3.75% at the June 17 meeting, though investors still expect a roughly 25-basis-point hike before year-end. Ahead of the release, the CME FedWatch tool had priced in about a 98% probability of the Fed leaving rates unchanged in June.
Crypto reaction was muted. Bitcoin (BTC) traded just above $61,000—around $62,005.50 at one point—largely flat over the past 24 hours after a modest intraday uptick following the CPI release. The broader risk environment remained mixed: U.S. stock index futures were down, the 10-year Treasury yield climbed to about 4.5%, and WTI crude slipped another 1% to roughly $88 a barrel.
Bottom line: cooler core inflation eased some near-term pressure on crypto by dialing back the odds of an imminent Fed rate move, but higher Treasury yields and weak equity futures kept upside limited for Bitcoin.
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