US CPI Data Hits Forecasts, Core Inflation Cools: Bitcoin Eyes $60K
US inflation data landed as expected, but a cooler core reading offers a glimmer of hope for risk assets. Bitcoin hovers around $60,000, caught between sticky headline prices and easing underlying pressures.
US inflation numbers for May landed squarely in the forecast, but the devil is in the details. Headline CPI held steady, propped up by energy prices, while the crucial core inflation figure actually cooled. This mixed signal leaves Bitcoin bulls and bears fighting for control around the critical $60,000 mark.
The Fed's playbook remains the primary driver. While the sticky headline inflation means no immediate pivot to rate cuts, the softer core reading eases fears of runaway price pressures. This data point is a small win for risk assets, suggesting the peak of war-driven inflation might be behind us, provided oil prices don't reignite the flames.
However, don't expect a sudden surge. Institutional players are still on the sidelines, treating crypto as a pure risk-on play. Bitcoin ETF outflows continue to be a drag, and even heavyweights like MicroStrategy face headwinds if current conditions persist. Expect consolidation until clearer catalysts like regulatory clarity or geopolitical de-escalation emerge.