Bitcoin rebounds despite rising US inflation rates
- Bitcoin (BTC) increased by approximately 2.5% to $62,410 following the US inflation report.
- The Consumer Price Index (CPI) rose by 4.2% year-over-year in May, marking its highest level in over three years.
- Monthly headline inflation increased by 0.5%, while core inflation rose by an annual rate of 2.9% and monthly rate of 0.2%.
- Higher energy and gasoline prices contributed significantly to the CPI increase amid renewed Middle East tensions.
- Despite the rise in inflation, traders viewed it as not severe enough to prompt a tighter stance from the Federal Reserve.
The recent CPI data provided a mixed outlook for Bitcoin, as higher inflation typically pressures risk assets like cryptocurrencies but did not exceed market expectations this time. This allowed Bitcoin to bounce back from key support levels, including the psychological price floor around $60,000–$62,000.
Currently, Bitcoin’s price remains below crucial short-term resistance levels, indicating potential volatility ahead as it trades around $62,410 following the CPI report.
