Bitcoin rebounded following the release of US inflation figures that closely matched Wall Street predictions, easing concerns over potential spikes in consumer prices that could unsettle risk assets. After briefly dipping below $61,000 ahead of the report, Bitcoin climbed back near $61,800 but remains slightly down over the past 24 hours.
The US Bureau of Labor Statistics revealed that the Consumer Price Index (CPI) increased by 0.5% in May compared to the previous month, exactly as economists had anticipated. Year-over-year inflation stood at 4.2%, consistent with market expectations, though higher than the 3.8% recorded in April. Core CPI, which excludes volatile food and energy sectors, rose 0.2% monthly—less than the 0.3% expected—and held steady at 2.9% annually.
Energy costs, however, remain a significant inflationary driver. The report showed a 3.9% monthly rise in energy prices, with gasoline alone surging 7.0%. Annually, energy prices climbed 23.5%, while gasoline jumped 40.5%. Analysts link this sharp increase to ongoing geopolitical tensions involving the US, Israel, and Iran. Meanwhile, housing prices added to inflation pressures, increasing 0.3% in May and accounting for over 60% of monthly price gains excluding energy. Food prices also rose modestly, driven by slight increases in both groceries and dining out.
The CPI release triggered initial volatility across cryptocurrency markets as investors assessed its implications for Federal Reserve monetary policy. Cooler-than-expected core inflation numbers reinforced expectations that the Fed may maintain a cautious approach, contributing to Bitcoin’s recovery from intraday lows.